First Bear, Then Fannie and Freddie ... Is Lehman Next?

More Bank Troubles

Experts say that small government bailouts are taking place frequently these days as the Federal Deposit Insurance Corp. takes control of failing small- to midsize commercial banks that have also been hit by the nation's mortgage meltdown.

But large banks aren't off the hook either: White said that Washington Mutual, which provided more than $150 billion in home loans in 2006, might be vulnerable to an FDIC takeover.

In July, the bank reported a $3.3 billion loss for the second quarter of the year and Monday announced it was replacing its longtime CEO.

"This is a financially troubled institution right now," White said.

The bank did not immediately return a call for comment but in a statement Monday new chief executive Alan H. Fishman said he was intent on "returning the company to profitability as quickly as possible."

The FDIC, which insures deposits of up to $100,000 at commercial banks, has taken control of 11 banks this year, including, most recently, Silver State Bank in Henderson, Nev. An additional 117 unnamed banks are on the corporation's "watch list."

But some question whether the FDIC might need a bailout of sorts.

The FDIC's insurance trust fund is supported by fees charged to U.S. banks. Mark Zandi, chief economist at Moody's Economy.com, said that the FDIC will raise its fees later this year but the increase might not be enough.

"If there are too many bank failures, it could overwhelm the FDIC's financial resources to digest those failures," Zandi said.

In that case, he said, the corporation would replenish its insurance fund with a cash infusion from the Treasury Department.

A Bailout for Car Companies?

Outside the financial sector, experts say that among the most obvious prospective government bailouts is one for the U.S. auto industry.

According to published reports, the industry will lobby Congress this week for as much as $50 billion in low-cost, government-backed loans.

Zandi said that one of the arguments in support of government aid is that auto companies, which have seen consecutive quarters of sagging sales, could use the loans "to tide themselves over until business improves."

There is precedent for an auto-industry bailout: In 1980, the federal government backed $1.5 billion in loans for Chrysler, helping the company to avoid bankruptcy.

But it's unclear whether the federal government would approve a loan package for the auto industry this year. Some argue that it would be too expensive while others say that political motivations -- Michigan, a major auto industry state, is also expected to be a swing state in the presidential election -- will prompt leaders from both parties to embrace the proposal.