Congressional Report: Financial System Still Wobbly
The financial system is still wobbly and could experience further setbacks if the commercial real estate sector collapses or unemployment rises sharply, a bipartisan congressional watchdog committee reported today.
According to the Congressional Oversight Panel, "The financial system [remains] vulnerable to the crisis conditions that [the bailout] was meant to fix," the panel wrote in a draft copy of the report.
The problem: Banks are still holding toxic assets on their books.
"These steps have ... allowed the banks to take significant losses while building reserves," the panel wrote in the report. "Nonetheless, financial stability remains at risk if the underlying problem of toxic assets remains unresolved."
The panel is headed by Harvard Law School professor Elizabeth Warren and includes Rep. Jeb Hensarling (R-Tex.); Richard Neiman, superintendent of banks at the New York State Banking Department; Damon Silvers, associate counsel at the AFL-CIO; and former Republican senator John E. Sununu of New Hampshire.
August 11, 2009; 11:11 AM ET
Categories: The Ticker | Tags: financial system
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Posted by: Dermitt | August 11, 2009 11:30 AM | Report abuse
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