"The unemployment rate now stands at 10.2%, yet stocks are at a 2009 high. The bulls will tell you not to worry; the unemployment rate is a lagging indicator. True as that may be, Charlie Gasparino author of The Sellout, has a word of warning: the jobs data may be a leading indicator when it comes to the health of our banking system.

One of Gasparino's sources, Calyon Securities banking analyst Mike Mayo (who warned of the credit bubble before the crash) tells him, if unemployment rises to 11%, 'there could be an issue where we have round 2 of this crisis.'

Why?

- If unemployment ticks higher, more consumer loans are likely to go into default and banks may have problems covering the additional loan losses. For now, banks are thriving from a low interest rate environment that allows them to borrow for nearly nothing and invest in safe Treasuries at 3.5%. That could all change if they need to boost reserves.

- Banks may find it difficult to raise more capital after already taking billions from the government. Are you willing to lend to zombie banks like Citigroup and Bank of America? Even relatively healthy banks like JP Morgan Chase and Wells Fargo might find it difficult.

- Toxic assets still infect the banking industry. Gasparino says $7 trillion in derivatives isn't a problem that goes away overnight, especially if the economy gets worse and their value falls once again. "It took 30 years to build this toxic assets, they [banks] haven't sold a lot of it, they haven’t written it down to zero," he warns.

How can we solve the problem?

Recent history suggests that's easier said then done."

http://finance.yahoo.com/tech-ticker/article/368866/Charlie-Gasparino-Job-Losses-Could-Trigger-Round-2-of-Banking-Crisis?tickers=bac,wfc,jpm,c,gs,ms,xlf

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