Was the point of the financial rescue that our banks should LOSE money?
With all of the hand-wringing this week about reported profits at JP Morgan and Goldman Sachs , it seems some people would be happier if our banks had reported losses instead of impressive gains.
It's a sign of the era of vengeance on Wall Street we're living in that such a return to health for these banks was met with winces instead of relief.
I'm not ignoring the fact that federal capital infusions last fall helped these banks survive the financial crisis, but it would be self-defeating and stupid if the result of that effort is to make U.S. financial firms uncompetitive.
I'm also not ignoring the fact that banks are benefiting from extraordinary access to Federal Reserve funds and other ongoing financial rescue programs. Some banks have also benefited by capturing market share because of the absence of some of their competition - Bear Stearns and Lehman Brothers.