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10 Major US Banks Told To Raise $75 Billion


Top U.S. economic officials say 10 of the nation's top 19 banks should raise $75 billion to help them weather future economic problems.

The directives follow a through examination of the major banks to see if they have enough money to cover potential losses if the recession gets worse. Banks lend out most of the money they get from depositors and investors.

They make money on the interest borrowers pay to use the money, so the more a bank lends, the more money it can make. But raising the number of loans also raises the risk that some will not be paid back when the economy turns sour, so the bank needs enough money to cover such losses.

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