Rescued banks may go bankrupt

Around from one hundred financial institutions receiving aid from the U.S. Government during financial instability they risk entering bankruptcy, according to a conclusion prepared and widespread condition today by The Wall Street Journal.

From an analysis of financial results for the third quarter of the financial institutions that received funds from the outline of rescue - known as "Depreciados assets relief program" or "tarp" in English, the newspaper says that a total of 98 entities are able to "sensitive" and the continuity of your endeavors in "danger".

These financial institutions reflect "erosion of their levels of capital, a myriad of high risk credit and warnings of the regulators", according to the newspaper stating that these institutions received a total of 4,200 M $ of the aid plan in 2008 during the mandate of the President George W.. Bush.

Riddled with loans
That outline was endorsed by the U.S. Congress to inoculate capital to financial institutions whose security was endangered by their high accumulation of active "toxic", as high risk mortgages.

Most of the almost hundred entities endangered entering bankruptcy status are small and are "infested capricious credits can not they recover", according to the newspaper.

Financial injections entities received U.S. Government averaged $ 10 m each, while its average of assets by September of this year 439 M each, time detailing the Rotary.

Sorry state
All of these accumulating problems as a ratio of own resources of quality ("Tier 1?") less than 6 per cent considered "well capitalized" minimum for a financial group, more than 10 percent of its loans are "non-performing loans" (who accumulate several months of defaults) or the authorities have claimed them to increase their capital.

The conclusion says that while the outline of rescue was intended for financial institutions with good financial force, "the scope of the problems faced today these institutions suggests that a good number of them were in a sorry state from the outset".

This same information made a similar conclusion in the second quarter of this year that detected in 86 entities as "sensitive", although so far only been seven banks that have gone bankrupt since that implemented the help outline two years ago.

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