|
|
Article: Spurious shoots; British banks.(Lost confidence in the banking sector)
- Article from:
- The Economist (US)
- Article date:
- March 8, 2008
CopyrightCOPYRIGHT 2008 Economist Newspaper Ltd. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
|
British banks are making big profits, so why are their shares so cheap?
FROM the daffodils exploding in gushes of yellow to the budding pink on its trees, London is drenched with the signs of rebirth. A joyful mood of spring has also infused the boardrooms of the country's biggest banks, most of which have just reported blooming profits.
Despite writing down billions of pounds-worth of exotic credit instruments linked to bad mortgages, most British banks revealed earnings that were higher than or close to those they posted for 2006. This is in sharp contrast to America, for example, where one in four banks lost money in the fourth quarter and full-year ...