Helen Huntley, Times Personal Finance Editor
Tuesday, July 22, 2008 10:42pm
Banks delivered a cascade of miserable news Tuesday, but investors apparently were expecting worse and responded by bidding up the shares. Meanwhile, Sheila Bair, chairwoman of the Federal Deposit Insurance Corp., said Tuesday that more banks are in danger of failing and that the FDIC expects to raise premiums to restore its reserve fund after paying out billions of dollars to depositors at IndyMac Bank.
"I think there is still a structural issue with U.S. banks," said Russell Walker of the Kellogg School of Management at Northwestern University. Banks are slashing their dividends, selling assets and issuing new securities to shore up their damaged capital.