Bank of America released their earnings report today, and Street seems to like them. What catches my eye about BofA and JP Morgan, who released yesterday, is the profits come from non-banking activities. Aren’t banks suppose to make money by lending to consumers? Most of the profits are coming from trading activities and investment banking transactions (raising money for corporations).
If the market takes a downturn or even just floats sideways for a while, I can’t see how their profits will increase from here, especially considering we have more home foreclosures coming to the market than we saw in all of 2008 and 2009.
