Paulson: Banking system sound

July 20, 2008 9:08:17 AM PDT
The treasury secretary says the list of troubled bank will grow longer as they struggle to cope with big losses on bad mortgages. But Henry Paulson is trying to reassure people who might be worried about their bank accounts. He says the U.S. has a safe and sound banking system and that regulators are on top of things. He calls it a manageable situation.

The government recently took over IndyMac after a run led it to become the largest regulated thrift to fail.

Paulson used appearances on the Sunday talk shows to tell people that deposits up to $100,000 are fully insured. He says no one has lost a single penny on an insured deposit in the 75 years that the Federal Deposit Insurance Corporation has operated.