The Fed Expects Bank Failures

Patrice Hill / The Washington Times:
Federal Reserve Chairman Ben S. Bernanke yesterday said for the first time that he expects some bank failures as a result of the spreading financial crisis, while consumers as well as banks will bear the brunt of what could be a protracted economic downturn. Mr. Bernanke's testimony before the Senate Banking, Housing and Urban Affairs Committee provided his gloomiest assessment of the economy to date and came after the government reported that economic growth approached zero at the end of last year. While maintaining the Fed's official stance that recession can be avoided, Mr. Bernanke discussed the possibility frankly and at length with senators.

Posted by Editor at February 29, 2008 01:27 AM