The nation’s six largest #banks reported $23 billion in profits in the second quarter, but they could end up victims of their own success. In recent weeks, the #TreasuryDepartment, senior #regulators and members of #Congress have stepped up efforts intended to make the largest banks safer. The banks have warned that more #regulation could undermine their ability to compete and curtail the amount of money they have to lend, but the strong earnings that came out over the last week could undercut their argument. The six largest banks now dominate the industry, accounting for more than half the sector’s assets. Since the crisis, this has helped them make profit from mortgages and credit card loans, as well as #WallStreet activities, like trading securities and underwriting deals. Their second-quarter #profits were up 40 percent compared with those in the period a year earlier. Over the last 12 months, their combined profits were more than $70 billion. Over that period, #MorganStanley, #GoldmanSachs and #JPMorgan’s investment bank, all big presences on Wall Street, paid compensation of $41 billion. Regulations planned or put in place in the crisis may also have helped banks by making them more resilient to shocks. The banks have less risky assets on their #balancesheets, which helped them get through the recent rout in the #bond market without big losses. dealbook.nytimes/2013/07/18/big-banks-flooded-in-profits-fear-flurry-of-new-safeguards/?hp
Posted on: Fri, 19 Jul 2013 16:53:20 +0000
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