Is another shoe about to drop in crisis?

Not too long ago, bank executives and regulators were suggesting that the worst of the credit crisis was over. Once Bear Stearns effectively went belly-up, people thought, 'OK, we've had the big failure. The nadir has been reached.' But then along came the Lehman Brothers situation, followed by the bond insurer situation. Now, all the optimism seems to have evaporated. All of a sudden, we're hearing about a possible wave of bankruptcies that could take the crisis to a new depths. The Financial Times suggests more companies will be pressured by the economy and banks that can't afford to extend any credit. It notes the case of Progressive Moulded Products, one of several motor parts company to file for Chapter 11 protection. Losses include Thomas H. Lee Partners, and lenders like Goldman Sachs. We'll undoubtedly see more of this, but how much more?

For more:
- here's the Financial Times article

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