Paulson urges banks to use new capital

October 17, 2008 10:57AM

Treasury Secretary Henry Paulson is urging banks to use their new capital
soon to unlock the flow of credit, and analysts fear the banks will hoard the money
to protect themselves. For every $1 that banks earned during the industry’s
most prosperous years, they have now lost $1.06. Officials say even with the
capital from the government, the banking industry still needs to raise about
$275 billion.

Comments are closed.