White House: Some banks will show serious woes

WASHINGTON — Some big banks will need more bailout bucks, Obama administration officials said Sunday, although it is unlikely the government might need to take over any reeling institution.

"We're confident that, yes, some are going to have very serious problems, but we feel that the tools are available to address these problems," senior presidential adviser David Axelrod said.

Regulators now are putting the nation's 19 largest banks through tests to determine their ability to withstand worsening economic conditions. The government hopes to make the results public in early May.

White House chief of staff Rahm Emanuel cited first-quarter reports from major banks showing they are making money as an encouraging sign. "But that doesn't take away that some are going to need resources. We believe we have those resources available in the government as the final backstop to make sure that the 19 are financially viable and effective," he said.

That does not mean going back to Congress for more money now, he added. Emanuel did not say that he had seen the tests, but said, "I do believe we have the resources to handle what the results will be."

Share This Story