New and small banks may close down in US

The small and new banks are at a risk to get closed down and this was predicted by the Fed chairman Ben -Bernanke who had been addressing the Senate banking committee during the biannual testimony. The financials index of Standard & Poor’s went down by 3% yesterday and he said that new thoughts were needed to solve the current problems.

He talked that the government proposals to help taxpayers in the mortgage market like the Fannie Mae and Freddie Mac will be helpful in easing the pressures on the economy. He also said that the US economy is weak as compared to it was in 2001 to absorb the economic crisis shocks.