Get Ready for More Failures of Bailed-Out Banks
By Daniel Indiviglio
Ever since the banking industry began to heal after the financial crisis, the bank bailout appeared to be working. By now, most very big banks have paid back what they owed the government. Even AIG — one of the most troubled bailout recipients of them all — is on track to leave taxpayers with little or no loss. But most of these news stories focus on the large institutions that most Americans have heard of, like Citigroup, JP Morgan, and Bank of America. Many smaller banks that took government aid aren’t faring as well.
In fact, Michael Rapoport of the Wall Street Journal reports that nearly 100 U.S. banks that took bailout (aka “TARP”) cash are in danger of failing: