Banks draw down loan-loss reserves to bolster profit

10/27/2010 | Wall Street Journal, The

An analysis of the nation's 18 commercial banks with $50 billion or more in assets shows that they saw third-quarter adjusted earnings of $16.8 billion. About $8.1 billion of that profit was from drawing down loan-loss reserves. During the financial crisis, banks set aside a significant amount of capital for loan losses, so they likely will continue to add to their profit by drawing down the reserves.

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Wall Street Journal, The

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