* Herbert Baer Senior Economist Federal Reserve Bank of Chicago

One of the major reasons that interest margins have opened so wide is the pressure put on the banking system to rebuild capital and reabsorb assets being sold off by undercapitalized institutions, the RTC and FDIC.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.