Obama predicts more bank failures

BBC
Tuesday, Feb 3, 2009

US President Barack Obama has warned that more US banks are likely to fail, as the full extent of their losses in the economic crisis becomes clear.

Speaking to NBC News, Mr Obama said "some banks won't make it" but stressed that people's deposits would be safe.

He has asked Treasury Secretary Timothy Geithner to draw up guidelines for banks receiving taxpayers' money.

Meanwhile, he warned of a "difficult next few days" as the Senate begins to debate his $800bn (£567bn) rescue plan.

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Taking responsibility

In an interview with NBC, Mr Obama said it was likely the banks had not yet fully acknowledged the extent of their losses.

"The banks, because of mismanagement, because of huge risk-taking, are now in a very vulnerable position," he said.

"We can expect that we're going to have to do more to shore up the financial system."

Full article here