Banks lose $800 million from low interest rates

[Texashiker]

I hope the tax payers to do have to make up for those losses.

http://finance.fortune.cnn.com/2012/08/28/bernanke-bank-profits/?iid=HP_LN

 

[dainthomas]

That's not much.

 

[Texashiker]

That's not much.

Sorry, it was $800 million.

 

[chowderhead]

Banks didn't lose money. They made less money then before. Boohoo. Wages and employment are down so too big to fail banks have to settle for less profits. That's life.

 

[PokerGuy]

Banks didn't lose anything, their profits were $800B lower as a result of the low interest rate environment.

That environment is not likely to change anytime soon, the fed is probably going to keep interest rates low for at least another year, maybe more.

 

[Fern]

I hope the tax payers to do have to make up for those losses.

http://finance.fortune.cnn.com/2012/08/28/bernanke-bank-profits/?iid=HP_LN

Why should taxpayers have to make up for this?

Do you know where banks get the money to lend?

They get it from taxpayers. Banks have never paid less for the money they get for loans, whether interest paid to depositors or the discount rate from borrowing from the US govt. A lower interest cost on money borrowed from the govt already means taxpayers are paying for it. Likewise with the crappy CD rates.

Cheaper rates to acquire money to lend should offset lower interest rates on customer lending. What we really need to see here is some info on the spread/delta between the cost of money borrowed from govt/depositors and rates charged lending customers.

I remain skeptical of this claim. I smell spin.

Compliance costs with the relatively new Dodd-Frank are expensive, I'd like to see some info on its affect on the banks' profit.

Fern

 

[spidey07]

I smell bullshit. A bank will ALWAYS come out ahead, always. That's how and why they can loan money. And they didn't lose any money, just a little less profit as an entire industry.

 

[soulcougher73]

I smell bullshit. A bank will ALWAYS come out ahead, always. That's how and why they can loan money. And they didn't lose any money, just a little less profit as an entire industry.

Time to cut jobs to make up that profit

 

[gevorg]

How can you lose money when you get it for free?

 

[wirednuts]

i had to sit in traffic the other day, which burned more gas and left me awake too long that night because i had to make an expensive tv dinner, which left me hungover and sick the next day so i lost money from not working.

i figure a direct loss of about $242.56 from having to sit in traffic. ill just go to my credit card company and tell them "well, i lost it. youll have to make up for it"

even worse, that 800mil they "lost"... WELL YOU ARE THE ASSHOLES THAT BURIED THE ECONOMY. ugh... such stupidity yet there will be people out there feeling bad for the banks.

 

[jackschmittusa]

Hmmm. Banks borrow from the government at practically 0% interest, loan it out at higher interest rates, still make billions overall, but not enough for them because they have to actually compete with each other for the loans (people are smarter now and actually shop rates).

How is this bad?

 

[steelodon]

How can you lose money when you get it for free?

Keyword - stimulus

 

[Texashiker]

Why should taxpayers have to make up for this?

Usually, when banks lose money, someone gets fired or goes to jail.

Will the banks be able to write that lost money off on the taxes?

 

[KB]

800 million out of 34 billion is nothing. Banks are fine.

 

[Gonad the Barbarian]

Usually, when banks lose money, someone gets fired or goes to jail.

Will the banks be able to write that lost money off on the taxes?

You can't lose something you never had.

 

[Vic Vega]

Banks didn't lose money. They made less money then before. Boohoo. Wages and employment are down so too big to fail banks have to settle for less profits. That's life.

Exactly.

 

[Incorruptible]

The taxpayer should have to pay for this if they voted for obama/big government/welfare/socialism

 

[waggy]

Stupid fucking article. they didn't lose jack shit.

 

[Smoblikat]

Thats not a loss, its just that they didnt make as much. Looks like theyll have to settle for 10 tons of caviar instead of 11................boo fucking hoo.