FDIC: Bank profits at record levels due to lower loss reserves

[steve2470]

http://www.latimes.com/business/money/la-fi-mo-fdic-bank-profits-20140226,0,5645362.story#axzz2uTB4qHWK

U.S. banking industry earnings increased nearly 10% last year to a record $154.7 billion, according to the Federal Deposit Insurance Corp., due mainly to banks setting aside less money to cover potential loan losses and litigation costs.

The FDIC said Wednesday that fourth-quarter profits at the nation’s commercial banks and thrifts rose 17% to a total of $40.3 billion from $34.4 billion in the final quarter of 2012.

It was the 17th time in the last 18 quarters that earnings have registered a year-over-year gain as the industry continues a slow but steady recovery from the financial crisis and housing debacle.

“Banks continue to put bad loans behind them and overall asset quality is remarkably strong,” American Bankers Assn. chief economist James Chessen said in a statement. “Going forward, problems loans will continue to fall, but at a slower rate.”


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Somehow I don't think this is good news for we Americans, long-term.

[doc03]

1. They should be you get like .01% interest on savings and they charge 19% on credit

cards