Banks Are Fine, but the Economy Isn’t

Two of the three big banks that reported results on Tuesday still earned a lot of money in the second quarter. That is less reassuring than investors might hope. Underlying the banks’ relative resilience in the second quarter were some arguably temporary benefits that don’t really address the long-term economic risks. Reserve builds in anticipation of future credit losses remain a major swing factor for earnings at Citigroup, JPMorgan Chase, which turned profits, and Wells Fargo, which didn’t. But bankers stressed that their…

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