Banks Warned to Guard Against Rate-Rise Risks

From Bloomberg: U.S. Warns Banks to Guard Against Rate-Rise Risks:

U.S. regulators including the Federal Reserve warned banks to guard against possible losses from an end to low interest rates and reduce risk or raise capital if needed.

I had recently mentioned a FDIC press release on this. Banks can get burned if rates shoot up. However, there are no expectations for rate hikes in the near term. From the article:

Economists in the survey see the target overnight interbank rate rising a quarter-point to 0.50 percent in the first increase and more than doubling to 1.25 percent by the first quarter of 2011.