Folau banks afl failure on rich list: Bank of America, Citigroup
By Nick Timiraosz
28 February 2014
Federal Reserve officials today warned of a possible banking collapse on the wealthy list in its latest statement regarding the financial crisis.
The announcement followed reports that BofA, Citigroup, Merrill Lynch, and others had all failed due to lack of liquidity on their massive, federally insured, US-government-sponsored commercial mortgages.
The Federal Reserve’s statement said the “structural issues in the financial system created by excessively high interest rates… could create systemic problems in a number of areas in the United States” and “these conditions could lead to a global financial panic.”
“In this sense, there are more factors contributing to financial markets’ current state of dislocations텍사스 홀덤 than there were during the 2007–2008 crisis,” said the statement issued on Monday.
“This situation may be in the early stages of a broader process that can eventually affect the entire economy or individual banking markets.”
But, it warned, “the ultimate outcome of any such measures or interventions is likely to prove difficult and unpredictable.”
The Federal Reserve statement further warned that “it is likely to be difficult to reduce the financial panic in the United States and the extent of adverse shocks to the global financial system could vary widely depending on the extent of central bank and government action at the local level and the degree to which other countries are forced to engage in similar interventions.”
The statement continued, “It is unlikely that any central bank or monetary policy may be able to significantly reduce the economic impact and financial stress that this situation can cause.”
Despite the Federal Reserve’s warning, the US House of Representatives on Monday passed a measure that would temporarily halt all bank bailouts of companies and homeowners who are at risk from economic collapse.
House Financial Services Committee Chairman Jeb Hensarling (R-Tex.) said the bill could have a chilling effect on US banks and “could inhibit the ability of any bank to bail out a company in distress.”
Meanwhile, the American Bankers Association (ABA) said that “too big to fail” banks are “the single biggest problem in the US banking system right now and should not be treated differently from any other type of institutions.”
The ABA argued that the issue of banking crises was the “single biggest domestic concern o