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Pastimes : Clown-Free Zone... sorry, no clowns allowed

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To: stan_hughes who wrote (360798)3/4/2008 1:08:41 PM
From: RealMuLan  Read Replies (2) of 436258
 
"The Federal Reserve monitors roughly 5,000 bank holding companies with total assets of around $14.2 trillion, Kohn said, as well as 870 state member banks with $1.5 trillion in assets. Inspections are conducted both on- and off-site to determine the health of different organizations "to ensure that [they] do not pose a threat to the soundness of the company's depository institutions," Kohn said.

Bank-holding companies, the 50 largest of which represent 75% of all assets at bank-holding companies, saw large losses in the fourth quarter of 2007, though net income still exceeded $90 billion for the year, Kohn said. But these institutions have responded to liquidity concerns by seeking more and diverse, stable sources of funding, raising more than $50 billion in new capital in recent months.

Nevertheless, "more asset writedowns are likely as the market continues to adjust to risk premiums, and valuations change," he said. "Adverse trends in loan quality will almost certainly continue and will require close monitoring by banking institutions and supervisory agencies alike."
economicnews.ca
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