Banks made $145.2 billion in the fourth quarter of 2006. I think that's a more appropriate benchmark rather than the $5.5 billion made in the first quarter of 2009. Banks are hoarding money, they've admitted as much. There is still the commercial real estate situation, which is getting bigger, although it hasn't delivered that second shoe warned about for more than a year. Then there is demand for loans, which remains scarce because qualifications are much more rigid. Don't get me wrong, people want to borrow money to buy homes and start businesses...it's still the American dream along with the white picket fence. The clock is ticking fast, and financial regulation may be tweaked but there is no room for big fixes to actually become a smart law. Instead the bill is being used to exact revenge on the evil banking system for political gain.
Tuesday, May 25, 2010
Banking Profits
From Charles Payne's newletter today:So, with financial regulatory reform heading for the finish line, everyone is worried about how draconian the measures will turn out to be. Worst case scenario is banks begin diversifying immediately, leaving less competitive businesses at home and abroad. Much has been made on Capitol Hill about how much banks made in the first quarter, but if those numbers are a shocker and must be stopped, then the real good-ole days will never return. I'm not a fan of big banks or Wall Street firms, but if we say $18.0 billion is too much for all FDIC insured banks there would be primal screams for the kind of cash raked in back in the day.
Banks made $145.2 billion in the fourth quarter of 2006. I think that's a more appropriate benchmark rather than the $5.5 billion made in the first quarter of 2009. Banks are hoarding money, they've admitted as much. There is still the commercial real estate situation, which is getting bigger, although it hasn't delivered that second shoe warned about for more than a year. Then there is demand for loans, which remains scarce because qualifications are much more rigid. Don't get me wrong, people want to borrow money to buy homes and start businesses...it's still the American dream along with the white picket fence. The clock is ticking fast, and financial regulation may be tweaked but there is no room for big fixes to actually become a smart law. Instead the bill is being used to exact revenge on the evil banking system for political gain.
Banks made $145.2 billion in the fourth quarter of 2006. I think that's a more appropriate benchmark rather than the $5.5 billion made in the first quarter of 2009. Banks are hoarding money, they've admitted as much. There is still the commercial real estate situation, which is getting bigger, although it hasn't delivered that second shoe warned about for more than a year. Then there is demand for loans, which remains scarce because qualifications are much more rigid. Don't get me wrong, people want to borrow money to buy homes and start businesses...it's still the American dream along with the white picket fence. The clock is ticking fast, and financial regulation may be tweaked but there is no room for big fixes to actually become a smart law. Instead the bill is being used to exact revenge on the evil banking system for political gain.
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