Related Articles
Top Stories
May 25 2012 13:58
The costs of the first phase of the Gauteng Freeway Improvement Project have increased significantly to almost R90bn, according to a report.
May 24 2012 17:31
The Reserve Bank will maintain current interest rates, and a considerable reduction in the local petrol price is anticipated, says governor Gill Marcus.
May 25 2012 11:36
The JSE has identified and stopped "incorrect" trades from one of its members, and will reverse the trades and lower the session's total value after the close.
Washington - The US banking industry's profits slid 94% in the third quarter from a year ago to $1.7bn, reflecting the credit crisis ravaging the sector and overall economy, regulators said Tuesday.
The Federal Deposit Insurance said insured commercial banks and savings institutions saw a massive drop from collective profits of $28.7bn in the third quarter of 2007.
"With the exception of the fourth quarter of last year, the latest earnings were the lowest for the industry since the fourth quarter of 1990," the agency said.
"We've had profound problems in our financial markets that are taking a rising toll on the real economy. Today's report reflects these challenges," said FDIC chairperson Sheila Bair in a statement.
FDIC cited higher provisions for loan losses as the primary reason for the drop in industry profits.
The industry also reported $7.6bn in losses on sales of securities and other assets in the third quarter, compared to $77m in gains a year earlier.
Many banks wrote down the value of mortgage securities and other assets affected by the crisis, FDIC noted.
Nine insured institutions failed in the third quarter, the most since the third quarter of 1993.
- AFP