On the fourth anniversary of the end of the Great Recession, bank profits are at all-time highs.
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Read excerpts from our interviews with Richard Brown, chief economist of the Federal Deposit Insurance Corp.; U.S. Senator Sherrod Brown, D-Oh, a member of the U.S. Senate banking, housing and urban affairs committee; and Daniel Poston, chief financial officer of Fifth Third Bancorp.
Available online only at www.mydaytondailynews.com
Key points on bank profits
- Quarterly bank profits in the U.S. reached $40.3 billion in January to March this year, at FDIC-backed institutions.
- Profits for all of 2012 of $141.3 billion were the second-highest annual profits on record.
- The gains return profits to the same level they were before the recent recession.
- Even though profits are back to pre-crisis levels, return on assets are not, meaning banks generally still earn less per dollar invested.
- Loose lending and risky practices were a leading cause of the 2007-2009 recession.
- Banking is a big Ohio industry. Fortune 500 bank Fifth Third is headquartered here. The no. 1 and no. 5 biggest banks in the country, JPMorgan Chase and U.S. Bank, hold Ohio charters.