Banks need more capital to handle sagging housing market

Dismal
housing data was released this week that showed record-low purchases of new and
existing homes last month, according to the Commerce Department and the
National Association of Realtors. 

Banks will
need more capital to deal with a slowing economy because financial institutions
aren’t prepared for a “double-dip” in housing, which “it looks like we are
having,” Whitney said. 

“They need
higher capital,” she said. 

Sales of new homes in July dropped to a record low and
purchases of existing houses plunged 27 percent, the most in records going back
four decades, according to reports from the Commerce Department and National
Association of Realtors this week.