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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: elmatador who wrote (109993)	1/21/2015 1:32:27 PM
From: Elroy Jetson	Respond to of 217669

American banks are doing better than European banks. There's nothing quite like enormous subsidies from the taxpayer and central bank to perk-up American bank earnings. Europeans have been quite parsimonious with their banks. One huge subsidy is the Fed is paying banks interest on their reserves which is far above market rate and far above the bank's cost of funds. The Fed is also allowing U.S. banks to count their Fed reserves as part of their capital under Basel-III regulations. American bank welfare sure does make them look better than banks in nations without bank welfare programs. The European Central Bank is doing European banks neither of these favors, so the revenue and loan volume of European banks is lagging behind that of American banks.