U.S.-based banks reported total profits of $18 billion in the second quarter, 70% less than in the first, according to the FDIC. While the highly publicized earnings reports of the “big six” Wall Street banks, even with Wells Fargo’s $2.4 billion loss, were $17 billion, the 5,000 small and community banks just about broke even for the quarter, as commercial and industrial lending fell despite the Payroll Protection Program loans. By contrast, the five largest Chinese commercial banks — Industrial and Commercial Bank of China, China Construction Bank, Agricultural Bank of China, Bank of China, and Bank of Communications — just posted their first-half (not first-quarter) earnings, and they totaled less than $10 billion. This indicates that regulators required them to set aside much more substantial — actually adequate — loan-loss reserves against bad loans in the crisis.
Collapsing Imperial System Paid
Wall Street Banks' Loan-Loss Reserves Too Small for Crisis
About the author
Latest articles
-
Daily Alert: Put an End to the War Model; Intervene for the Peace Model
-
Put an End to the War Model; Intervene for the Peace Model
-
Harley Schlanger Addresses World Peoples Assembly in Moscow: 'Why Preserving Truthful Historic Memory Is Essential for Peace'
-
Capricorn Bioceanic Corridor Can Bring Connectivity and Integration, Ibero-American Leaders Say
Related coverage
-
Collapsing Imperial System Paid
U.S. 'Operation Economic Outcast' Continues, Results Not Clear
-
Collapsing Imperial System Paid
GOP Moots a U.S. Export Ban on Diesel; China Increases Exports
-
Collapsing Imperial System Paid
Oil Rise Paused, but Diesel Kept Rising
-
Collapsing Imperial System Paid
While Migrant Arrivals to Europe Fall Deaths Continue To Rise