On October 19, 2009
As Asset Valuations Soar, Earnings Wobble: How Safe Is The Banking System?
Despite a surging stock market, renewed trouble is brewing on the bottom line for a big chunk of the financial services industry. That’s creating a lot of confusion as to how healthy the overall industry really is. Last week, Bank of America and Citigroup both reported large losses from making consumer loans and lending via credit cards. In a similar vein, BB&T, one of the early bank success stories this year, announced Monday morning that its third-quarter profit plunged 56 percent, to $157 million, as a result of credit issues. BB&T was one of the first banks to repay its Troubled Asset Relief Program (TARP) funds this year in June, and later acquired billions in Colonial Bank’s deposits after…
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