Wednesday, August 29, 2012

Bank Earnings Up But Remain Troubled



Banks’ earnings up as more borrowers repay loans. Aug 28, 2012 The Washington Post by D. Douglas http://www.washingtonpost.com/business/economy/banks-earnings-up-as-more-borrowers-repay-loans/2012/08/28/6758cfa8-f125-11e1-a612-3cfc842a6d89_story.html?wpisrc=nl_headlines_nonlocal

[Excerpted] "the volume of problem loans remains well above normal levels...

Most of the profits seen in the second quarter came from reducing emergency funds set aside for loan losses, not from increased revenues. Banks set aside 26 percent less money to cover future losses on loans....

...Credit card balances rose by $14.7 billion, while residential mortgages grew by $16.6 billion — less than 1 percent from the same period a year ago.

...“Levels of troubled assets and troubled institutions remain high, but they are continuing to improve,” FDIC Acting Chairman Martin Gruenberg said at a news conference on the report....

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