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Some Small Banks Can't Repay TARP - WSJ.com
A snippet since this may be paid content:
"Hundreds of small banks can't afford to repay federal bailout loans, a top watchdog will warn Wednesday in a report that challenges the government's upbeat assessment of its financial-system rescue.
Christy Romero, special inspector general for the Troubled Asset Relief Program, said 351 small banks with some $15 billion in outstanding TARP loans face a "significant challenge" in raising new funds to repay the government.
...
The report is the latest sign of a yearslong squeeze on smaller banks, those with less than $1 billion in assets. Their numbers and profitability have been declining due in part to regulatory and technological changes that made bigger institutions more profitable."
Watch your funds if you're using a smaller bank, especially if some of your funds exceed FDIC insurance limits or the bank is not insured by the FDIC.
Peter
A snippet since this may be paid content:
"Hundreds of small banks can't afford to repay federal bailout loans, a top watchdog will warn Wednesday in a report that challenges the government's upbeat assessment of its financial-system rescue.
Christy Romero, special inspector general for the Troubled Asset Relief Program, said 351 small banks with some $15 billion in outstanding TARP loans face a "significant challenge" in raising new funds to repay the government.
...
The report is the latest sign of a yearslong squeeze on smaller banks, those with less than $1 billion in assets. Their numbers and profitability have been declining due in part to regulatory and technological changes that made bigger institutions more profitable."
Watch your funds if you're using a smaller bank, especially if some of your funds exceed FDIC insurance limits or the bank is not insured by the FDIC.
Peter