Fed lifelines preserve banks that, frankly, are better off dead
(NEWSER) - The Federal Reserve’s aggressive lending to banks has helped avert financial collapse, but it may have created some monsters as well, the Wall Street Journal reports. A research paper from the University of Chicago suggests that while federal aid has succeeded some in thawing frozen credit markets, it has also sustained weak banks laden with toxic assets. These “zombie' banks otherwise would have died, allowing stronger institutions to absorb their bad assets. More»
