Banks Lining Up for More Rescue Funds

Experts are saying 2009 is looking like a tougher year for banks than 2008 was
By Jim O'Neill,  Newser User
Posted Jan 15, 2009 7:30 AM CST
A customer leaves a branch of Chase Bank in New York.   (AP Photo/Mark Lennihan, file)
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(Newser) – US banks are poised to release a new round of losses in the coming weeks that show just how deeply submerged in red ink the industry still is—as this year begins to look worse for banks than last, the Washington Post reports. Pressure is mounting for more injections of capital from the second half of the bailout fund, just as Democratic leaders want the cash for other industries and struggling homeowners, and Senate skeptics will try in a vote today to block the release.

As worse-than-expected results began to emerge yesterday, a session with Larry Summers and Rahm Emanuel, Obama's economic adviser and chief of staff, failed to make the release palatable to GOP opponents, the Post reports. Fed Chief Ben Bernanke Tuesday said banks will need more help to keep the financial system afloat this year.