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1/9/10

The Financial Sector: why banks profit with so many bad loans out there - by Ilyce Glink

The biggest US banks have profited in 2009 in a variety of ways. For Bank of America, Merrill Lynch (which the bank acquired in late 2008) has brought extraordinary profits. Goldman Sachs profited by hedging against its real estate investments and not getting in as deeply as other big banks.

Banks were bailed out because governments believes that without a strong financial system, American capitalism would be toast. I have to agree. But we should have placed requirements on the cash we lent to the banks so that they would aid in the recovery (which they're not really doing).

For more: Why banks still profit with so many bad mortgages out there - washingtonpost.com


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