Small Banks: How Fragile Are They?

Credit troubles at many smaller institutions are mountingand plunging shares make it harder to raise capital to cover losses

A toxic brew of bad bets on ultra-risky debt, a weak economy, and plunging home prices could soon leave some U.S. banks short of the cash they need to stay afloat. Adding to their worries is a sense that it's getting harder and harder for institutions to raise funds.

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