Written by:
Brian Wettach

American Banks: The Bigger, The Better Off

The US banking system has been rocked, and through government involvement and buyouts the financial numbers appear to be stabilizing. The banks doing the best at the moment are the larger ones like Goldman Sachs and Morgan Stanley--both of whom reported increasing third quarter profits. Despite this growth, their value-at-risk numbers remain high, likely prompting additional government involvement. Though a few large banks at the top report improvement, our banking system on the whole slipped in the second quarter. This scenario is being described as a pyramid model, with a few banks doing well as the rest continue to suffer. General optimism and confidence have caused an increase in bank shares and improving capital levels allowing the big banks to stay strong. Read the full article here

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