Economic Crisis, Banks | featured news

The government panel, the Financial Crisis Inquiry Commission blames: Banks that made reckless bets, credit rating agencies that endorse risky mortgage-backed securities and government regulators who overlooked warning signs until they threatened the global financial system.

Banks are finally beginning to lend, the big ones that is. Commercial and industrial lending is up this quarter 0.2% from the third quarter, according to Moody's Analytics. That might not sound like much, but it's the first quarterly increase in two years. This is great, right? After all, if banks are lending more to businesses, they can expand and begin to hire. That's true, but this trend reveals something else: the financial crisis has created an environment where big banks are getting bigger, as the small ones struggle.

Treasury Secretary Timothy F. Geithner said the government rescued American International Group Inc. to prevent a "catastrophic" blow to the U.S. economy, not to save any of AIG's counterparties.

President Barack Obama singled out financial institutions for causing much of the economic tailspin and criticized their opposition to tighter federal oversight of their industry....

Several major U.S. banks, led by Wells Fargo & Co, said the troubled economy drove credit losses higher, reducing profitability in the second quarter.

The former chief, Angelo R. Mozilo, is the highest-profile person to face charges in the wake of the financial crisis.

Developing nations face budget shortfalls of up to $700B in 2009 due to global financial crisis.

The Royal Bank of Scotland will later report what is expected to be the biggest annual loss in UK history.

House members want the eight big banks to increase their lending and explain what they are doing with the taxpayers’ money.

President Barack Obama's top economic adviser would not rule out on Sunday that more money may be needed to stabilize the financial system as a deep recession increases banks' losses.