WSJ headlines and questions for February 6 2012

WSJ headlines and questions for February 6 2012 - WSJ...

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WSJ headlines and questions February 6, 2012. WSJ Headline February 3. Banks Depleting Earnings Backstop The rainy-day funds that banks have been tapping to boost their earnings could soon begin to dry up, and that doesn’t bode well for bank profits. Many banks have been “releasing” reserves against bad loans since the worst of the crisis passed and the economy began recovering. That money flows to the bottom line, helping some banks boost earnings at a time when lending and trading profits have been relatively low. The top 10 U.S.-owned commercial banks released $4.3 billion in reserves during the fourth quarter, accounting for about ¼ of the bank’s earnings. This was actually a slowdown from earlier in the year, given that the full-year 2011 releases totaled $26.7 billion. The releases were even larger proportions of net profits for some of the largest institutions. For Citigroup, the after-tax reserve release was $1.3 billion, more than all of its $1.2 billion in net income.
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WSJ headlines and questions for February 6 2012 - WSJ...

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