1st Qtr Profits for Banks

April 16, 2009

Good news for Wells and Chase. Both reported healthy profits in the 1st quarter. Chase earned $2.14 Billion and Wells earned over $3Billion. It seems that banks are making money for a couple of reasons. More people are depositing money into the bank. This can either be from savings or because people are taking their money out of the stock market and other investments. Secondly, the mortgage refinance market is doing well due to low interest rates. On the downside, losses are still pouring in from loan and credit card defaults. Ironically, people are being forced to default on their loans because they are unable to get any credit. Let’s hope the trickle down theory works and banks start lending again. According to our banking sources, banks should be lending again by the end of May. Stay tuned.

Written by billshuttic · Filed Under Bill's Articles