Forget too-big-to-fail, new concern is that many banks are too-weak-to-survive

Firms with over $11 trillion in assets would remain troubled even if interest rates rise, IMF says in new report

A third of biggest banks in the world’s richest countries are so weak their problems could not be solved even by a recovery and rising interest rates, the International Monetary Fund said in a new report released Wednesday.

About a third of European banks, with $8.5 trillion in assets, and a quarter of U.S. banks, with $3.2 trillion in assets, are in this too-weak-to-recover category, the IMF said. Continue reading