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US banks emerge stronger from crisis


A decade after the onset of the financial crisis, large US establishments have never seen so much profit.



THE WORLD ECONOMY | 05.07.2017 at 10.40 am • Updated 05.07.2017 at 10h41 | By Stéphane Lauer (New York, Correspondent) and Véronique Chocron

Ten years after the start of the financial crisis, the big American banks have never seen so much profit. JPMorgan Chase, Wells Fargo, Morgan Stanley, Bank of America, Citigroup and Goldman Sachs, in the same year, accounted for nearly $ 91 billion (€ 81.8 billion) in profits. Despite the $ 200 billion in fines paid to settle their responsibilities in the 2008 depression, despite the new financial regulations that were supposed to cut their wings, Wall Street finally came out.

As early as 2008, US banks received massive financial support from the US government through the Troubled Asset Relief Program (TARP). More than 245 billion dollars have come to consolidate their balance sheets fragilized by the liquidity crisis. "In the United States, I note that there is no equivalent to the European system of State aid or the commitment of European funds. Once the support of the Congress was obtained, they were able to react with far fewer constraints than the Europeans, "said Edouard Fernandez-Bollo, Secretary-General of the ACP Supervision of banks.

Above all, the European Union does not have a single control tower to decide on a shock therapy. "In a fortnight, Americans have completely restructured their investment banks. They have built giants in retail banking. In Europe, we have multiplied our meetings ... and it took us ten years to increase bank capital , "said Baudouin Prot, who was CEO of BNP Paribas during the crisis.
"Between 3 and 5 points ahead"

American groups also benefited from an earlier economic recovery. As early as 2009, they benefited from the return of growth, while their European counterparts found themselves entangled in the sovereign debt crisis ...

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