Barack Obama today said that the US banks are in a very vulnerable position.
Mr Obama said it was likely the banks had not yet fully acknowledged the extent of their losses.

Mr Obama said “some banks won’t make it” but stressed that people’s deposits will be safe. He has also asked Treasury Secretary Timothy Geithner to draw up guidelines for banks receiving taxpayers’ money.

“The banks, because of mismanagement, because of huge risk-taking, are now in a very vulnerable position,” he said.

“We can expect that we’re going to have to do more to shore up the financial system.”

He also made it clear he is taking responsibility for turning round the US economy before the next presidential election in 2012, saying he could only expect one term in office if it was not fixed in the next three years.