Bank Bust - NBC New York

Bank Bust

Former IMF chief predicts big U.S. bank will close



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    Hundreds of customers wait in line to get into an IndyMac Bank, open for the first time since the July 11 federal government takeover of the thrift, on July 14, 2008 in Pasadena, California. (Photo by David McNew/Getty Images)

    A former chief of the International Monetary Fund predicted that a large U.S. bank will go belly-up in the coming months -- a casualty of  the worsening global financial landscape.

    Prof. Kenneth Rogoff, the IMF's chief economist  from 2001 to 2004, said the global credit crunch has made large U.S. banks vulnerable to closure and that he expects one of the financial giants to fall soon.

    "We're not just going to see mid-sized banks go under in the next few months, we're going to see a whopper," he said during a conference in Singapore. "We're going to see a big one -- one of the big investment banks or big banks."

    Rogoff also criticized the Federal Reserve for slashing interest rates while inflation keeps climbing to the highest point since 1991.