The Profitable and the Few

Perhaps it should come as no surprise that while fewer banks control more assets, bank profits have been better than ever. Last year, overall bank profits increased 10 percent to $155 billion, a record for the industry and the fourth straight year of increases.

None of this especially displeases regulators. The industry’s minders have condoned the trend of fewer lenders making more profit and controlling a larger share of the banking system. And they assure us that our banks are in good shape now. The real unknown is whether the rest of us will benefit. So far, those fat bank profits haven’t translated into rapid job gains or a booming economy. Nor have ATM fees, account fees and credit card fees fallen-not that anyone was banking on that happening.

Article Appeared @http://www.newsweek.com/2014/04/25/profitable-and-few-248157.html

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