AGL 40.00 No Change ▼ 0.00 (0%)
AIRLINK 127.04 No Change ▼ 0.00 (0%)
BOP 6.67 No Change ▼ 0.00 (0%)
CNERGY 4.51 No Change ▼ 0.00 (0%)
DCL 8.55 No Change ▼ 0.00 (0%)
DFML 41.44 No Change ▼ 0.00 (0%)
DGKC 86.85 No Change ▼ 0.00 (0%)
FCCL 32.28 No Change ▼ 0.00 (0%)
FFBL 64.80 No Change ▼ 0.00 (0%)
FFL 10.25 No Change ▼ 0.00 (0%)
HUBC 109.57 No Change ▼ 0.00 (0%)
HUMNL 14.68 No Change ▼ 0.00 (0%)
KEL 5.05 No Change ▼ 0.00 (0%)
KOSM 7.46 No Change ▼ 0.00 (0%)
MLCF 41.38 No Change ▼ 0.00 (0%)
NBP 60.41 No Change ▼ 0.00 (0%)
OGDC 190.10 No Change ▼ 0.00 (0%)
PAEL 27.83 No Change ▼ 0.00 (0%)
PIBTL 7.83 No Change ▼ 0.00 (0%)
PPL 150.06 No Change ▼ 0.00 (0%)
PRL 26.88 No Change ▼ 0.00 (0%)
PTC 16.07 No Change ▼ 0.00 (0%)
SEARL 86.00 No Change ▼ 0.00 (0%)
TELE 7.71 No Change ▼ 0.00 (0%)
TOMCL 35.41 No Change ▼ 0.00 (0%)
TPLP 8.12 No Change ▼ 0.00 (0%)
TREET 16.41 No Change ▼ 0.00 (0%)
TRG 53.29 No Change ▼ 0.00 (0%)
UNITY 26.16 No Change ▼ 0.00 (0%)
WTL 1.26 No Change ▼ 0.00 (0%)
BR100 10,010 Increased By 126.5 (1.28%)
BR30 31,023 Increased By 422.5 (1.38%)
KSE100 94,192 Increased By 836.5 (0.9%)
KSE30 29,201 Increased By 270.2 (0.93%)

The US financial system remains fragile a year after a bank bailout program was initiated and the government needs to be ready to step in to help more if necessary, a senior US Treasury department official said on Thursday. "The recovery has just begun, the financial system remains fragile, and the credit markets are not fully functioning," Herb Allison, assistant Treasury secretary for financial stability, told the US Senate Banking Committee.
Allison said the Troubled Assets Relief Program, or TARP, had helped stabilise an economy that was in freefall when the Obama administration took office in January. "We still have a long way to go before true recovery takes hold, but we are now pointed in the right direction," he said. Allison said TARP was intended as "an emergency response to a major financial crisis" and Treasury will exit from its bank investments as soon as it can.
Treasury has received over $70 billion in principal payments from banks that received taxpayer bailouts and almost $23 billion in proceeds from the repurchase of warrants by banks that have already repaid the principal investment. "For those banks that have elected not to repurchase their warrants, Treasury intends to begin auctioning those warrants later this year," Allison said.
He noted that "significant parts of the financial system remain impaired" and noted falling commercial real estate prices may additionally pressure banks' balance sheets. "In this context, it is prudent to maintain capacity to address new developments." Allison said, a possible sign that Treasury may want to keep the TARP funds available for use if needed for some time.

Copyright Reuters, 2009

Comments

Comments are closed.