Inside Banking: DC Banks earnings, FHFA reconsideration, and Shareholders first

Donny Wise: DC Consumer Banking: - The health of the banking industry is at the forefront in the consideration of a sustainable economic recovery. In addition, the health of the industry can be measured through performance, market indicators including foreclosures and housing, and corporate responsibility of banks to implement business models and strategies to foster a safe and prepared industry. The local indicator in DC banking is the recent report in the Washington Business Journals stating that earnings were up for the 40 local banks in the fourth quarter of 2011. The market indicator is the recent urgent request by lawmakers for the FHFA to follow reconsideration mortgage loans to assist homeowners underwater in a mortgage loan. Third, the reckless behavior of the banks are still alive in the current economic uncertainty as banks were allowed to pay $33 billion in dividends to shareholders, and this move was allowed by the Federal Reserve with Europe still on the brink of the abyss and now higher gas prices purged to strangle the current recovery. These developments are insight to Inside Banking this week.

First, Washington, DC banks earnings rose 30% in the fourth quarter of 2011 for the 40 area local banks as reported by the Washington Business Journals. The information was from a report by the Federal Deposit Insurance Corporation (FDIC) released on Tuesday. The impressive performance of local DC banks does prove a turnaround in the local banking industry in lieu of DC being one of the fast areas to recover from the impact of the Great Recession.

In review of other banking news, the FHFA is being to follow through with reconsideration of Fannie and Freddie loans for borrowers with underwater mortgages to work on tackling the matters of principal and interest reduction to avoid a further onslaught of losses and foreclosures. In addition, The Atlantic is reporting that banks were allowed to pay $33 billion to shareholders in 2011 after the Federal Reserve assurance to regulate dividend disbursement. The Fed allowed banks to pay shareholders with questions about bank capital requirements and uncertainty in Europe if the banks had enough capital on hand in lieu of another crisis.

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About Donny Wise

Writer, Publisher, Personal Finance Advocate, and Business Owner Donny Wise & Associates LLC and Finance Dynamic

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    […] Inside Banking: DC Banks earnings, FHFA reconsideration, and Shareholders first ( […]


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