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Bank profits come directly out of your pocket

The rally in the stock market and the return to profitability for some of the top banks has been hailed as a sign of a turnaround -- and proof that the interventionist financial policies of the past year worked.

But not so fast. In reality, a huge chunk of the profits banks are earnings can be directly attributed to their ability to borrow money at artificially low interest rates.

According to a report from the Center for Economic and Policy Research found that below market interest rates offered by The Federal Reserve accounted for 41% of JPMorgan's profits. At Bank of America, the number was 47%.

Continue reading Bank profits come directly out of your pocket

Analyst initiations 4-05-07: Under Armour, Ford Motor & Cephalon initiated today

MOST NOTEWORTHY: Specialty pharmaceutical companies make up today's most noteworthy list:
OTHER INITIATIONS:
  • Ford Motor Co (NYSE: F) was initiated at Buckingham with an Underperform rating and General Motors (GM) was started with a Neutral rating.
  • Nollenberger believes Under Armour, Inc (NYSE: UA), started with a Buy rating, is positioned to outperform the market based on the strength of its brand name and demand through the continued introduction of new products along with European growth.
Analyst summaries provided by TheFlyOnTheWall.com (subscription required).

Symbol Lookup
IndexesChangePrice
DJIA+44.2910,291.26
NASDAQ+15.822,166.90
S&P 500+5.501,098.51

Last updated: November 12, 2009: 03:31 AM

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