Senator Robert Bennett warned today that another major U.S. bank is "teetering" on the edge of failure and that "there will be no more commercial paper." If a bailout deal does not come through soon, he warned, the bank will go under. He declined to say which bank was in danger.
The Politico blog reports:
Bennett was essentially trying to warn the congressional holdouts on the bailout legislation that the situation was so dire that more U.S. banks would fail as soon as Monday or Tuesday, and he seemed to have knowledge, as a member of the Banking Committee, of another major financial institution in trouble.
"What will they say come Monday if another major bank fails _ I will not use the name," Bennett said. "There's another major bank teetering on the edge."
Bennett has been in on some of the key negotiations on the bailout, and appears to have been briefed on some of the severe consequences if Congress fails to act on the bailout legislation.
"If everyone understands how dire the situation is, that will concentrate the mind," Bennett said. "There will be no more commercial paper."
Anyone want to guess which bank?
