Banks

Two of Wall Street’s biggest banks kicked off second-quarter results season with a boost to earnings. JP Morgan Chase said that Q2 profit rose 18% as the bank continues to benefit from a strong US economy and the new federal tax law. Citigroup said its Q2 profit rose 16%. Both banks exceeded analysts’ expectations; for Wells Fargo, it was a different story.

JP Morgan Q2 Earnings at a Glance

  • Profit: $8.3 billion, or $2.29 a share. Analysts polled by Thomson Reuters had expected earnings of $2.22 a share.
  • Trading revenue: $5.4 billion, a 13% increase from $4.8 billion a year earlier.
  • Costs: $15.97 billion, an increase from $14.77 billion a year earlier.
  • Return on equity: 14% in Q2 compared with 12% a year ago.

Citi’s Q2 Earnings at a Glance

  • Profit: $4.49 billion, up from $3.87 billion a year earlier. Per-share earnings were $1.63. Analysts had expected $1.56 per share.
  • Revenue: $18.47 billion, a 2% rise from a year ago. Analysts had expected $18.51 billion.

Meanwhile, Wells Fargo reported a profit of $5.19 billion, or $0.98 a share.

That was down from $5.86 billion in the year-ago quarter.

Revenue also fell, to $21.6 billion from $22.2 billion in the second quarter of 2017.

The bank in mid-April adjusted first-quarter earnings down $800 million after paying a $1 billion settlement to regulators over improper charges to mortgage and auto-loan customers.

Read more on Wells Fargo earnings.

“the invisible hand of the free market will organize EVERYTHING for you. (or maybe not, maybe it does not give a damn about you)”

“theory of libertarians: only people that make money are 1. valuable 2. positive for society (no matter how you make that money, be it drugs, weapons or human trafficking. (paint your company in beautiful colors and make it look like you are an philanthropist…))”

i am demanding: FREE TRADE OF EVERYTHING, EVERYWHERE, ALL THE TIME! (yes you will also sell drugs on sundays) (it would be funny if it was not so real)

#FDP die unsichtbare Hand des freie Markt regelt ALLES. (oder auch nicht) #FDP Theorie (noch heute): Nur Menschen die Profit machen sind: 1. etwas wert 2. positiv für die Gesellschaft (ob mit Drogen, Waffen oder Menschenhandel ist EGAL) Sei ein guter Mitbürger und verkaufe deinen Kindern Drogen! (falls Sie kein Geld haben, gib ihnen einen Kredit)

It reads like this: “If a bank gives you a loan, it is charging you interest on money, that the bank never possessed in the first place.”

(a private bank can borrow 10$ from the FED or 10€ from the ECB of “real cash money” and lend out 90$ / 90€ in “artificial loan / debt created digital money” (“bank money” / Buchgeld, “checkbook money” / Giralgeld) and charge interest on that.

If you pay back 10% of your loan, the bank’s break even point is reached, but it (of course) insists that you pay back 100%+interest or sell off your house cheap and fast.

if interest rates are low – they simply charge more for the management of your bank account.

They earn money – no matter what they do.

Neulich auf Twitter: “Bank müsste man sein. Wenn sie dir einen Kredit gibt, kassiert sie jahrelang Zinsen auf Geld, das sie nie hatte. Wenn du pleite gehst, gehört dein Haus der Bank & wenn alles schief geht, wird sie vom Bürger/Staat gerettet. Einfach unglaublich!”

even a local bank’s employee (!) told me in my face: “i know a bank is a criminal organization.”

wow. i hope his honesty does not get him fired.