- Fed Says Economy Picks Up But Keeps Lid on Interest Rates
- Wall Street Back to Business as Obama's Regulatory Overhaul Loses Momentum
- Investment News Briefs
- Bank Failures Could Surge as Commercial Real Estate Losses Continue to Mount
- The Newest Ruse: Banks Capitalizing on "Toxic Assets" to Book Puffed-Up Profits
- U.S. Banks: Why Only the Simplest Will Succeed
- JPMorgan Chase Posts 50% Profit Drop, Predicts "Weak" Markets "Through Remainder of Year or Longer"
Stay tuned: We're about to see more of these puffed-up profits. JPMorgan Chase & Co. (NYSE: JPM), Bank of America Corp. (NYSE: BAC) and PNC Financial Services Inc. (NYSE: PNC) will reportedly be booking as much as $56 billion in windfall profits using similar financial chicanery in the months ahead.
Sadly, millions of investors will likely interpret this as a sign that the U.S. financial sector is once again a viable "profit" play - when the reality is that Wall Street hasn't learned a single darned thing from the financial crisis and is up to its old tricks once again.
He may well be right; more interesting is what this tells us about the U.S. banking system going forward.
"The institutions are insolvent," Roubini said in a Bloomberg Radio interview. "You have to take them over and you have to split them up into three or four national banks, rather than having a humongous monster that is too big to fail."