Thursday, April 21, 2011
Where's the growth?
This is a good article on the outlook of many US banks. Talks about increasing regulations, fines, prosecutions, and less activity that are all pushing down profits for banks. The future doesnt look good for these banks either with even more of the above mentioned factors coming just around the corner.
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3 comments:
This is a very interesting article regarding the current struggle that banks are going through. The example of Bank of America now on its sixth finance chief in seven years is a bit concerning. Although it does seem like a good idea to get rid of those who are pushing down profits for a particular bank, it seems like it might be kind of difficult for one to immediately adjust and be capable of such a quick upturn.
I wonder whether any of these banks will be affected by the second quantitative easing coming to a close and the potential for a third to be put into place. Interest rates should steadily rise in the next few months, but I wonder what these banks reactions will be, especially as profits have been declining for them.
This is always discouraging to hear banks are going to have problems in the near future, however some forecasts seem to be more positive, and we can only hope that banks will begin to have more success in this economy.
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