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Article: Banks to report earnings, but unreported costs could mount: ; Bad loans, higher FDIC premiums to eat profits
- Article from:
- Charleston Gazette
- Article date:
- October 14, 2009
- Author:
CopyrightCopyright 2009 Charleston Gazette. Provided by ProQuest LLC. (Hide copyright information)
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NEW YORK - If the nation's major banks report big third-quarter
profits, don't take the numbers at face value.
Although trading gains could drive strong earnings for banks like
JPMorgan Chase & Co. and Goldman Sachs Group Inc., mounting loan
losses and the prospect of tougher capital requirements and higher
deposit insurance fees are expected to eat into the banks' profits
well into 2010 and beyond.
Moreover, after all the reports are in, investors might be seeing
a fragmented earnings picture, with profits at large companies
obscuring festering problems at banks of all sizes, and in the
broader economy as well. Disappointing earnings could dim hopes for
a meaningful economic recovery and ...