It’s been a rough year for big banks.
They have been the biggest losers of the market and have had their net worths eroded by the crash and the subsequent collapse of their business model.
But it seems they will be the only banks to be hit by the economic and financial meltdown in the coming weeks.
The FT reports: The biggest loser in the financial crisis, Citigroup (C) and Bank of America (BAC) have both reported record fourth-quarter losses and their worst-ever losses for a single quarter.
In its latest earnings report, the bank that suffered the worst economic impact of the crisis, Wells Fargo (WFC), said it would be reducing its dividend by 6% in the second quarter, the biggest cut in the industry since the end of last year.
Bank of America, meanwhile, said its second-quarter profit fell 30% to $3.3bn, the worst quarterly performance since 2010.
“The economy has not recovered to its potential, and our results have been weaker than we anticipated,” said Tim Sloan, the chairman of the bank’s board.
Wells Fargo, which is still reeling from the collapse of its retail banking business and the bankruptcy of its mortgage business, has been shedding assets at a fast pace.
It reported a $2bn impairment charge in the first quarter.
The bank also reported a loss of $2.9bn for the year, or about 6% of its profits.
Barclays (BARC), which had a solid fourth-year profit, has also been hit hard by the downturn.
Its share price fell 15% in pre-market trading, and it posted a loss for the second straight quarter.
Barclays was a victim of the financial meltdown.
Meanwhile, UBS (UBS), which was the second-largest loser of the global financial crisis after JP Morgan Chase (JPM), has been struggling to turn a profit.
Banks have been hit with $2 trillion worth of fines from regulators and are still fighting to regain profitability.
Reuters says: BarClays said it was cutting more than 100,000 jobs as it grapples with the fallout from the global crisis, and the British bank has said it is planning to cut more than 1,000 employees.
Investors are hoping for a new round of regulatory relief that would allow banks to open new branches and create more jobs.
While it may be tempting to blame the bank and its regulators for the financial collapse, it is also a reflection of how far the financial system has fallen.
At least 20 million Americans were forced out of their homes in the 2008 financial crisis and many of those who remained are struggling to survive.
More: “We have lost millions of jobs because of the economic crisis,” said Richard Painter, who served as chief White House ethics lawyer for President George W. Bush.
Now it’s the banks that are getting the blame.
Here’s the breakdown of the big banks and how much they owe to taxpayers.
Financial services: UBS: $2.7 trillion In a statement, U.S. President Donald Trump said that the U.K.-based bank is a “toxic” environment and will be “taken down by the American people.”
“I am sending a clear message to the banks of the U to do the right thing and put our country first,” he said.
Credit Suisse: $1.3 trillion Credit SaaS (Citi’s subsidiary) and other banks have been under pressure from the U, EU and U.N. to pay back more than $2 billion in U.M.F. bailout funds.
However, the UBS and UBS said they will seek to recoup those losses as soon as possible.
Royal Bank of Scotland: £7.4 billion The bank’s share price has been battered as it struggles to recover from a loss in the global economic downturn.
Its stock price is down nearly 10% this year.
The UK-based bank has a $1.5 trillion capital shortfall and is on track to be unable to pay the remaining $1 trillion of the $3 trillion in UBS’ $2,000-a-day loans.
LendingClub: $5 billion Lenders have been grappling with a drop in demand and a shortage of funding for their mortgages, which are now down by more than 40% from their peak in the spring of 2009.
Greece: €1.9 trillion The country’s bailout of the banking sector has also taken a heavy toll on its finances.
Greek banks are currently struggling to pay their debts, and have to raise new capital from investors in the form of interest rate swaps and other loans.
“Greeces public debt has grown by over €1 trillion over the past three years,” said