Despite the federal bailout program initiated nearly two years ago, a new study suggests that a sizable number of financial institutions are still on shaky ground.
Using information collected through Dec. 31, 2009, the Weiss Ratings released on Monday list 2,259 U.S. banks and savings and loan institutions as "still vulnerable to financial difficulties or even possible failure."
These include some of the nation’s largest banks, which have $5.8 trillion, or nearly 44 percent, of the industry’s total assets. Among them are Bank of America, Citibank, Wachovia Bank, SunTrust Bank and Regions Bank.
"Major U.S. banks continue to be plagued by toxic assets and an inability to raise capital," said Martin D. Weiss, chairman of Weiss Ratings. "Despite the federal government’s help, we’ve witnessed 73 bank failures so far in 2010, more than double last year’s pace — a pattern that is bound to continue as further loan deterioration and regulatory reform take their toll on already shaky banks.
"Although most vulnerable banks will not ultimately fail, the failure rate could rise sharply if the U.S. experiences any further economic or financial adversity."
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