According to the FDIC, the banking industry earned $21.6 billion in the second quarter of 2010, a vast improvement from the $4.4 billion loss in the same quarter of 2009 and the highest level since 2007. However, with the good news comes the bad. The FDIC said there are now 829 troubled banks on the confidential watch list, an increase of 54 banks since the first quarter of 2010. Also troubling is the 1.4% drop in lending activity quarter over quarter, a sign that banks are still unwilling to lend money in this economy.
Despite the discouraging lending news, bank stocks and bank ETFs are rallying today. The SPDR KBW Bank ETF (AMEX:KBE) is higher by 1.2% on Tuesday, while the iShares Dow Jones US Regional Bank Index Fund (AMEX:IAT) is higher by 1.3%. Components of these ETFs faring well today include Citigroup (NYSE:C), US Bancorp (NYSE:USB) and JP Morgan (NYSE:JPM).
This Article's Word Cloud:AMEXAccordingAlsoBancorpBankCitigroupComponentsDespiteETFsFDICFundHoweverIndexJonesMorganNYSERegionalSPDRTuesdayactivitybankbankingbanksbillioncomesconfidentialdiscouragingdropearnedeconomyfaringfirstfromgoodhigherhighestiSharesimprovementincludeincreaseindustrylendlendinglevellistlossnewsquartersincetoday
Any ideas and opinions presented in all Market News Video clips are for informational and educational purposes
only, and do not reflect the opinions of BNK Invest, Inc. or any of its affiliates, subsidiaries or partners.
In no way should any content contained herein be interpreted to represent trading or investment advice.
None of the information contained herein constitutes a recommendation that any particular security, portfolio,
transaction, or investment strategy is suitable for any specific person. All viewers agree that under no
circumstances will BNK Invest, Inc,. its subsidiaries, partners, officers, employees, affiliates, or agents be held
liable for any loss or damage caused by your reliance on information obtained. Read Full Disclaimer.