Banks vulnerable but profits, pay at pre-crisis levels -OECD

[Joanne98]

Source: Reuters

PARIS, May 26 (Reuters) - Banks are making sizeable profits and paying staff as much as in 2007, before the global financial crisis, yet they remain vulnerable, the OECD said on Wednesday.

"Audited accounts for 2009 show that, in the environment of low funding costs and reduced competition following the crisis, major banks earned large amounts of net income from interest margins and investment banking activities," the Paris-based Organisation for Economic Co-operation and Development said.

Major banks "increased personnel compensation expenditure back to 2007 levels, despite reductions in the number of employees and despite high bank income resulting, to a large extent, from public policies," it said in a report on the economic outlook.

"Banks nonetheless remain vulnerable," it added, noting that the price of credit default swaps to protect bank bond investments remained relatively high, due partly to worries about public finances in Dubai, Greece and elsewhere.


Read more: http://www.reuters.com/article/idUSLDE64P0DM20100526

[ixion]

1. it's not about the 'banks' as such, it's about enriching the folks at the top of the heap

and pilfering all they can before their insolvent business goes belly up.

[fasttense]

2. The Fed is ensuring their profits and their fat CEO pay.

"major banks earned large amounts of net income from interest margins."

The Fed lends to the banks at almost zero and the banks lend out at 3 to 8 percent. Do you think the Fed would lend to me at near zero? What a racket. How can you lose when the house is funding your gambling habit?

[CHelms]

4. Banks don't have anything to worry about

Thanks to Bush and the Republicans, their losses have all been nationalized. Their bad loans and incomprehensible financial instruments are all backed by American taxpayers to the tune of 23 trillion dollars. TARP, less than one 23rd of the total bailout package, is the only part we ever hear about. John Q Taxpayer is now financing the purchase of top hats and monocles for people who cannot manage their own businesses.

[AllentownJake]

3. There has been some compression on their guaranteed spread with Treasuries lately

Should wipe a few of the fuckers out...I'm sure Ben and Tim are nervous right now.

The market calls all bets.

[scentopine]

5. "mission accomplished" -nt