These graphs extracted from the latest US FDIC quarterly report display the long term impact of the crisis on the US Banks. Their predicament has a much earlier lead time, and a suggests a far longer expected period for improvement to anything close to pre 2008 results.

People are in retrenching mode, and the consumer confidence and asset values that drove banking business volumes until 2007 are not returning in the near future, depsite the stock market growth which has occurred in 2009.

Loan losses remain 400% higher than the 2001/ 2007 period. when related to Operating Revenue.

Relevance to Bankwatch:

Banks have a double whammy of covering loan losses that continue to grow, and lack of new business growth on the retail banking side to help grow out of those losses.