No Joy on Wall Street Despite Big Bank Earnings
Bloomberg notes in a story today (10/3/12), that the combined $63 billion in profit reported by the six largest U.S. lenders over the four quarters through June is more than they earned in any calendar year since the peak in 2006.
Bloomberg said, according to interviews with more than a dozen bank executives and analysts, that those billions of dollars in profits aren’t enough. The lowest leverage in a decade, return on equity at a third of 2006 levels, higher capital requirements, shares trading below book value, declining bonuses, job cuts, the European sovereign-debt crisis and a backlash against bankers have damped the joys of profit.
To read the Bloomberg story click here.