Banks making progress: Paulson

Investment banks have made good progress in their efforts to recover from market turmoil sparked by the US subprime loan crisis, US Treasury Secretary Henry Paulson said Friday. "Since March, I believe the investment banks have continued to make progress," Paulson told reporters travelling with him to a meeting of finance chiefs from the Group of Eight industrialised nations here.
"Some have learned lessons," he said. He said the banks had "improved their funding and liquidity, and they've strengthened their capital position." Jitters about the health of Wall Street banks have resurfaced this week after Lehman Brothers announced it expected an unprecedented second-quarter loss of 2.8 billion dollars as it battles to stem trading losses.