Post by Forever Sunshine on Feb 27, 2014 1:15:25 GMT -5
Not only have the nation's banks fully recovered from the financial crisis, their bottom lines are now healthier than ever.
On Wednesday, the Federal Deposit Insurance Corp. said profits at U.S. lenders hit an all-time high in 2013. For the year, the nation's banks made a collective $155 billion. That's up 10% from a year ago, and it was more than the $148 billion the banks made back in 2006, the last time profits peaked.
For the last three months of 2013, banks made $40.3 billion. That was also an all-time high, and a rebound. Bank profits were down in the second and third quarters of the year.
The FDIC noted a large portion of the bottom line boost, though, came from an accounting maneuver that other regulators have cautioned about. In the fourth quarter, the FDIC said 20% of bank profits came from putting away less money to cover future lending losses. Recently, officials from the Office of the Comptroller of the Currency have questioned whether banks are lowering their reserves for bad loans too quickly.
Anyone Surprised
On Wednesday, the Federal Deposit Insurance Corp. said profits at U.S. lenders hit an all-time high in 2013. For the year, the nation's banks made a collective $155 billion. That's up 10% from a year ago, and it was more than the $148 billion the banks made back in 2006, the last time profits peaked.
For the last three months of 2013, banks made $40.3 billion. That was also an all-time high, and a rebound. Bank profits were down in the second and third quarters of the year.
The FDIC noted a large portion of the bottom line boost, though, came from an accounting maneuver that other regulators have cautioned about. In the fourth quarter, the FDIC said 20% of bank profits came from putting away less money to cover future lending losses. Recently, officials from the Office of the Comptroller of the Currency have questioned whether banks are lowering their reserves for bad loans too quickly.
Anyone Surprised
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