John Dugan, comptroller of the currency for the U.S. Treasury, said the weakening economy could cause a wave of bank failures. "We're going to have some more bank failures that will come back more to historical norms and may go above that with time," Dugan said. He said he does not expect, however, as many failures as during the late 1980s and early 1990s because banks have better underwriting standards, they are better capitalized and have done less speculative lending.

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