By Rachel Goldfarb, originally published on Next New Deal
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Annual Bank Profit Falls for First Time in Five Years (WSJ)
Victoria McGrane says the trend is primarily because seven of the 10 largest banks posted lower earnings, while other parts of the banking sector, like community banks, are thriving.
The vast majority of the nation’s 6,509 banks reported increased earnings for 2014, the FDIC said in its quarterly report on the health of the banking industry. But seven of the 10 largest banks posted lower earnings than the previous year, driving the industry total below its 2013 level.The decline illustrates the postcrisis shakeout occurring at the biggest banks, which are wrestling with new rules that have slowed—or in some cases stopped—banks from engaging in certain business lines and legal woes from conduct preceding the 2008 meltdown.
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