US President George W. Bush denied Tuesday that the US economy was in recession or would go into one despite a spate of downcast reports and gloomy indicators.
“We’re not in a recession, I don’t think we will go in a recession. We’re in a slowdown, and there’s a difference,” Bush said in an interview with American Urban Radio Networks. “No question there is softening now.”
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“I am confident in our economy,” he said.
Shaky loan portfolios continue to darken the landscape for the nation’s banks, as federal regulators prepare for the possibility of an uptick in failures of financial institutions, according to recent government reports.
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All of this is happening as the FDIC, established during the Great Depression to provide a backstop to depositors during a rash of bank failures, solicits banks’ input on ways to accomplish as orderly a wind-down as possible in the event of a major bank’s demise. The FDIC sent a notice out to banks requesting their ideas last month.
“The notion that a bank is too big to fail shouldn’t be out there,” says Jim Marino, of the FDIC’s Division of Resolutions and Receiverships.