Bailed-Out Banks Remain in Danger of Failing: 98 Banks at Risk

Tuesday, December 28, 2010
By Paul Martin

By DANNY KING
DailyFinance
12/27/10

More U.S. banks are in danger of failing, even after receiving aid from the federal government, The Wall Street Journal reported Sunday. The economy has done little to improve the financial conditions of many struggling institutions, leaving 98 bailed-out banks without the capital to lift themselves out of the at-risk category, according to the Journal.
That’s a 15% increase from the second quarter, when 86 of the banks that had received funds from the Troubled Asset Relief Program, or TARP, were considered at risk.
Taxpayers have spent more than $2.7 billion in TARP funds on seven banks that nonetheless already have failed, while the 98 at-risk banks have together received more than $4.2 billion, the Journal reported. A Government Accountability Office report in October said that many of the failed banks should have been red flagged for their already precarious financial position during the application process.

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