Just 11% of Americans are very confident about the financial stability of the nation’s banking system. A Rasmussen Reports national telephone survey found that another 43% are somewhat confident. Forty-one percent (41%) are Not Very Confident or Not at All Confident.

The survey found that 58% of the nation’s voters closely followed news of the controversial Bear Stearns deal that was worked out last weekend. Thirty percent (30%) of American voters said the Federal Reserve did a good or excellent job handling the situation. Thirty-seven percent (37%) said the nation’s central bank did a fair job while 17% said the Fed’s performance was poor.

Seventy-eight percent (78%) said it’s at least somewhat likely that other large investment banks will suffer a fate similar to that of Bear Stearns. That figure includes 40% who said such financial trouble is Very Likely. Only 2% said it is Not at All Likely.

A commentary by Larry Kudlow wonders if Bear Stearns was a Sacricial Lamb. “Did government policy makers hope to convince the public that a big Wall Street firm could indeed fail?” Robert Novak takes a look at Finance’s New Day. A Rasmussen Reports video analysis looks at how quickly confidence has deteriorated in recent months.

The trouble at Bear Stearns comes as consumer and investor confidence has fallen to the lowest levels of the decade. Data from the Rasmussen Consumer Index shows that most Americans believe the U.S. economy is in a recession. A separate survey found that 38% believe things may be even worse and say that a Depression is at least somewhat likely.

The current survey found that just 23% believe that adequate safeguards are in place to prevent another 1930’s style Depression. Forty-seven percent (47%) say such safeguards are not in place while 31% are not sure.

Republicans are evenly divided as to whether or not adequate safeguards are in place. Democrats, by a 53% to 16% margin say there is not enough protection. Unaffiliated voters, by a 49% to 19% margin, tend to agree with the Democrats.

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