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Bank profits rise

Banks netted a $35.3 billion profit during the third quarter of this year, the FDIC noted today.

Better loans and fewer losses from struggling borrowers helped the commercial banks and savings institutions insured by the FDIC.

The third-quarter profits were an $11.5 billion improvement over the same period last year.

Banks have risen since the financial collapse, but an economic recovery still requires work.

Martin Gruenberg, the FDIC’s acting chairman said: “Ongoing distress in real estate markets and slow growth in jobs and incomes continue to pose risks to credit quality. The U.S. economic outlook is also clouded by uncertainties in the global economy by volatility in financial markets.

“So even as the banking industry recovers, the FDIC remains vigilant for new economic challenges that could lie ahead.”

Perhaps Gov. Christine Gregoire has noticed this uptick on the balance sheets of banks, as she proposed higher tax rates on financial institutions with windfall profits. She believes such a move could bring $53.8 million in new state revenues.

John Stucke
John Stucke joined The Spokesman-Review in 2000. As Metro Editor, he directs local news coverage and oversees newsroom reporters. He has reported on business, health care, bankruptcy and agriculture for the paper.

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