These Two Look Good; So Why Am I Bothered?
This week comes with good news for two big banking related companies.
First, Goldman Sachs, the bank holding company that engages in investment banking, securities services and investment management, posted a $3.44 billion profit in the second quarter of this year, fantastic when one thinks that just six months ago, we were wondering if they were going to fail completely.
Second, JPMorgan Chase & Co., the second- largest bank in the United States, reported this morning that they showed a second quarter profit of $2.7 billion dollars; they were also in big trouble at one point.
I’m not upset that the banks are starting to do better; I’m really not. What I’m wondering is what it really means for everyone else. I mean, how did they do it, both of these companies, while others have failed? Sure, there was TARP money, which Goldman Sachs has paid back, but that hasn’t worked for everyone. I know the stock market has started to turn around some, but was it enough to pull them this far up this quickly?
The same question about Chase. How have they been able to turn things around, while analysts are worried that both Bank of America and Citigroup are going to come out with less than stellar figures next week (though they could always be wrong)? And, if they’re doing so well, as a bank, why are we still hearing about so many people who can’t get loans, even from Chase properties?
Well, I’ll be happy for the moment, because any positive steps for the economy seem to make everyone else feel pretty good, and we certainly need more financial feel good stories, don’t we?