Well, Goldman Sachs (GS) and JP Morgan (JPM) are excellent, Wells Farge (WFC)– not a lot. And Im not exactly sure I d call JPM “great” as $5.2 Bn of the quarters $14.3 Bn in earnings originated from the release of loan reserves that were set aside in 2015 to cover expected loan defaults. Because the Federal Government tossed $6Tn at the economy ever since– it turns out they didnt require the $5.2 Bn to cover bad loans so now the cash (which was always in the bank) is transferred to the income side of the journal.
I have actually always objected to Loan Loss Reserve accounting because it enables a bank (and numerous other business) to take revenues that have currently been stated (and already moved the stock) out of Cash (revealing a loss on need for taxes, housecleaning, and so on) and then back to profits when they feel like it (to improve the stock price or conserve a quarter). Especially for Businesses that are able to purchase back their own stock when the cost is depressed due to a loss they purposely caused and after that, when they wish to sell more stock or take bonuses– they merely re-recognize the revenues on need. What a rip-off!
Bank earnings are excellent..
We were far too conservative with GS when we made it a Top Trade Idea for our Members on October 14th:.
