Friday, February 13, 2009

Large U.S. banks on brink of insolvency

Some of the large banks in the United States, according to economists and other finance experts, are like dead men walking.

A sober assessment of the growing mountain of losses from bad bets, measured in today's marketplace, would overwhelm the value of the banks' assets, they say. The banks, in their view, are insolvent.

Estimates of the capital injection needed in the United States range to $1 trillion and beyond. By contrast, the commitment of taxpayer money is the $350 billion remaining in the financial bailout approved by Congress last fall.

"The United States banking system is effectively insolvent," Roubini said.

Link to complete article: Herald Tribune, Feb 13

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