What is the true state of the banking industry?

There seems to be a lot of good news about the banks in the popular media lately, both locally in Australia and in the US. Bank earnings have exceeded analyst expectations and some of the banks have even managed to pay back the government bailout funds. Consequently, the stock price of the big banks have made impressive gains in recent months.

However, Elizabeth Warren, head of the Congressional Oversight Panel, released quite a sobering report on the state of the banking industry in the US in August 2009. In this video interview, she explains what is really going on with the increasingly irrelevant balance sheets of the bailout banks. Once again, this underscores what a farce the stress test was, the complicity of the accountants in making the transparency initiative a sham, and why the banks are still as underwater as they ever were.

Watch this video and make your own mind up about what the true state of the banking industry is today.

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Posted by Christina on Aug 16th, 2009 and filed under Opinions. You can follow any responses to this entry through the RSS 2.0. You can leave a response by filling following comment form or trackback to this entry from your site
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1 Response for “What is the true state of the banking industry?”

  1. Addicted to Money: the problem with easy credit | SMSF Investment Strategies says:
    November 13, 2009 at 4:30 pm

    [...] Panel and I have highlighted her warnings about the banking industry in an earlier blog post “What is the true state of the banking industry?” After knowing how assets are valued on banks’ balance sheets, I have made a personal [...]

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