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2.7%  Q1 GDP    4.57%  avg. 30-year mortgage     9.5%  Unemployment

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.

-- Frank Ahrens
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By Frank Ahrens  |  August 11, 2009; 11:11 AM ET
Categories:  The Ticker  | Tags: financial system  
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Comments

Holding up toxic banks. Just not my thing, but let them go at. Get away with a take of toxic assets. Low speed escape in a garbage truck. Jokers. Post you later. 500 is still half of 1,000. Life's a grand thing. Post could hit a grand. Buy Post. The Dow has the blahs. Some problems are bigger than others. I gotta jet, so have fun without me and try not to break anything. The banks are breaking enough.

Posted by: Dermitt | August 11, 2009 11:30 AM | Report abuse

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