Are the too-big-to-fail banks suddenly healthy? Call me skeptical, for all the reasons listed below:
Take any industry you like, eliminate half of the combatants, and give the remainder fat government guarantees, free money and relaxed accounting standards, and JPMorgan Chase & Co’s second-quarter profit of $2.7 billion doesn’t look so remarkable. Even a U.S. automaker could make a buck or three under those conditions.
Mark Gilbert, “Goldman Toaster Alone Can’t Re-Heat Global Economy“; Bloomberg (8/13/09)