Quick reminder: those toxic assets, which a few months ago were all anyone could talk about, are still there. They never went away.
The TARP never removed them from bank balance sheets, the underlying health of the securities hasn’t improved, and there’s still a big dispute over how much they’re worth.
NYT: The Treasury Department’s $700 billion bailout program has stabilised the banking system, but it has done little to prod banks to fully deal with the troubled loans on their books, a Congressional oversight panel said in a report to be released Tuesday.
“The nation’s banks continue to hold on their books billions of dollars in assets about whose proper valuation there is a dispute and that are very difficult to sell,” the panel said in its latest monthly report.
For proof of the problem, you just have to look beyond the anointed top 19 or so banks, and check out this year’s bank failure bloodbath, which continues to take down some pretty sizable names across the country.
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