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Banks Least Likely to Pay Back Bailout Funds
Tweet Share on Facebook May 5, 2009 Comment (2)Some banks that have received money from the government's Troubled Assets Relief Program may soon be able to start paying it back—once the government allows them. But a number of banks are clearly still struggling. The government "stress tests" run on the 19 biggest banks, for instance, show that as many as 10 of them may need to raise more capital to cover losses that will continue to mount as the recession intensifies.
If they can't raise that money the old-fashioned way—from investors in the private sector—they'll have no choice but to ask the government for even more bailout money. That could ultimately add $100 billion or more to the $250 billion the government has already injected into banks.
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Best and Worst Bailout Banks: Methodology
Tweet Share on Facebook May 5, 2009 Comment (3)To devise our "market-to-bailout ratios" and determine which banks are most and least likely to pay back government bailout funds, we started with a list from the Federal Deposit Insurance Corp. (FDIC) of the 100 biggest banks operating in the United States, ranked by total assets. We eliminated foreign banks, which haven't directly received funding from the Troubled Assets Relief Program, and consolidated various subsidiary banks into their holding companies. Then we added the amount of TARP funding granted to each bank.
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Hooray for Chrysler’s Rogue Creditors
Tweet Share on Facebook May 1, 2009 Comment (20)One rap against President Obama is that he never gets mad. The Chrysler bankruptcy may have proven otherwise.
