DALLAS - Federal Reserve Board Governor John LaWare said improvement in the health of U.S. banks has been impressive, though problems remain.

"There are still going to be bank failures," he said. "There are still a handful of fairly large banks that have some problems."

Speaking at a banking conference here, Mr. LaWare said he sees no indication that the nation's economy is poised for a quick turnaround.

Mr. LaWare said he sees "a continuing of sluggish growth" with no major indications of a rebound. "I don't see anything that's changing that."

Having earlier predicted that the economy would grow by 3% in the third and fourth Mr. LaWare declined to say whether his forecast has changed.

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