Bank of America Corporation and Citigroup Inc. strangled by bad credit loans

Banks suffer losses from bad credit loans

In brief: U.S. Bank are unable to recover due to bad loans. Bank of America Corporation (NYSE: BAC) and Citigroup Inc. (NYSE: C) shares still rising.

Bank of America Corporation (NYSE: BAC) shares continue to trade in the green zone, despite the absence of positive statistics. Bank shares rose by 1.2% in the last hour of the trading session. Gaining about 1%, Citigroup Inc. (NYSE: C) shares aren’t falling below 3.79 points.

In order to understand the problems faced by the U.S. banks, ome must turn to history. From 1990 to 2006 54% of new loans were secured by taxpayers. Some may still believe that the idea of buying shares in 2002, when the state of the economy had caused considerable doubts, and the Federal Reserve was called to take new measures, was correct. Since the end of 2002 up to 2007 the S & P 500 gained 67%. As to those who were “lucky” to obtain stocks included in the S & P 500 in late 2003, they are stilll at loss. All said is to remind how important is choosing the right time. The markets are particularly susceptible to aggressive actions on the part of the government. Perhaps, now is the high time for those who correctly calculated the Fed’s appetite for shock therapy and insecurity.

Igor Tringlers
2010-08-23 19:52, Economics.

News on: , , , , , , , ,

Post a comment