By  Updated on Tue Jul 15, 2014

Banks Record Highest Quarterly Profits Ever: 5 Things to Know for the Week

 
Banks Record Highest Quarterly Profits Ever: 5 Things to Know for the Week

Daniel Oines / Flickr source

Following a decent recovery from the financial crisis, the banking industry is back to making plenty of money. In the last quarter, U.S. banks reported the largest combined profits in the records. Much of it came from ditching bad consumer loans that lingered in the balance sheets since the recession.

  • Bank of America is closing two Cleveland offices and laying off more than 1,000 employees that specialize in home loan fulfillment and and consumer banking. “We continue to reduce the size of our mortgage servicing operations in line with the successful reduction of our portfolio of delinquent mortgage customers,” the bank told Crain’s Cleveland Business.
  • U.S. Bank has updated its mobile applications with new features that make it more convenient for customers to manage their accounts by phone. Customers can now report lost or stolen credit cards and dispute fraudulent charges on their smartphones
  • The Obama administration has issued a new rule that would require insurance companies to accept payments made through various methods, including money order and prepaid debit cards. The rule is meant to address the large number of uninsured people who are eligible for federal subsidies to pay for health coverage, but do not have bank accounts.
  • In the second quarter of 2013, U.S. banks reported total profits of $42.2 billion, up 23 percent from the same quarter in 2012, according to the Federal Deposit Insurance Corporation (FDIC). It is the largest quarterly profits for the industry since the FDIC began recording the data. The FDIC also reports that larger institutions are getting more of the profits will smaller banks struggle.
  • On Friday, the U.S. Bureau of Labor Statistics will report on the nation’s job situation for the month of August. Investors and individual savers have a stake in knowing the unemployment rate because an improving jobs market means that interest rates will rise and that the Federal Reserve will be closer to tapering its bond-buying program.
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