Positive bank reports offer new hope for economy

Tuesday, April 14, 2009

As the nation awaits President Obama's speech on the state of the economy, some of the country's largest banks are reporting positive earnings. Both Wells Fargo and Goldman Sachs reported even larger than expected first-quarter returns. Is this the hope we've been waiting for as we wait results from the other "too big to fail banks" this week? And what does it mean to be profitable when you owe the nation a multi-billion dollar debt? For some perspective on what this means for the state of banking and the public's perception of banks, The Takeaway is joined by James Surowiecki who writes The Balance Sheet blog and is a business columnist for The New Yorker.
"It's profitability with an asterisk. The one thing to remember is, every dollar these banks earn right now is, for the most part, a dollar that we're not going to have to put into them if we, say, were to take them over."
—The New Yorker's James Surowiecki on banks reporting positive earnings


James Surowiecki

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