The Coronavirus Is Doing Weird Things to the Banking Industry

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Profits are down. Margins are low. Banks are bracing for a wave of soured loans. On the other hand, they’re raking in fees and deposits.

The normally unexciting quarterly industry report from the Federal Deposit Insurance Corp., released last week, showed in stark detail how the pandemic is ensnaring banks big and small.

Profits tumbled as the banks put aside billions for loan losses. Margins hit an all-time low. Fee income hit a record high. Customers flooded banks with more deposits than they had ever seen, so much so that the nation’s safety net for bank failures fell below a legal limit. The banks, a gauge for the broader economy, have signaled they anticipate a longer, deeper recession than they first expected in the spring. Though much of the economy has held up relatively well, the banks say government stimulus and other temporary reprieves have likely delayed the pain, not overcome it. Many lenders are bracing for a wave of defaults.

The turmoil has made it hard to see how banks will grow profits, one reason shares have failed to rally along with the market.

 

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Another great Article

Trump Report Card: -Pandemic:Failed to turn in this assignment (F) -Russian bounties:Failed to complete (F) -BLM:Misunderstood,called them thugs, sent in troops, hid in basement (F) -Elections:Cheated,Lied,Sabotaged others,Conned teachers (A) -Economy:Stole paper from Obama (C-)

How many fees for late charge card payments made using USPS?

We may not like banks but they stopped functioning in 2008 and we were on the edge of Armageddon.

Time for more bailouts to save fucking indices?

To be clear, the coronavirus isn't doing this.

ok

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