Treasury Secretary says bank system is secure

Published 16 months ago

Despite the home mortgage crisis that could cause more damage than good, Treasury Secretary Henry Paulson wants workers to know that the banking system is secure. He also noted that Indymac will not be the last bank to fail, but that the percentage... more

Despite the home mortgage crisis that could cause more damage than good, Treasury Secretary Henry Paulson wants workers to know that the banking system is secure. He also noted that Indymac will not be the last bank to fail, but that the percentage will be relatively low. IndyMac’s takeover by Federal Deposit Insurance Corporation on July 11th was the third largest bank failure in US history. So far this year, Five U.S. banks have failed. Paulson said about 99 percent of the 8,500 U.S. banks, holding about 99 percent of bank assets, fell into the highest category of capitalization, a measure of financial health. He also stressed that it is essential that Congress approve the stability plan for Fannie Mae and Freddie Mac, which are responsible for 70 percent of U.S. home loans. less

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