Another sign of the improving health of our nation's economy is that the banking sector appears to be gaining strength all the time. According to a report from the FDIC, the banking industry collectively earned $35.3 billion in the first quarter of 2012, up 23 percent from the previous quarter, when it earned $28.7 billion. The nation's banks haven't earned so much since the second quarter of 2007, before the start of the recession that fall.
In addition the number of banks on the FDIC's "troubled" list continues to drop. It's now at 772, down from 813 in the fourth quarter of 2011. But it's still at a frighteningly high 9.5 percent of all federally insured banks.
It's worth recalling just how dire the situation was for our banking sector at the heights of the fiscal crisis. From 2007 to 2009, the world's banking system posted losses of around $1 trillion; here in the U.S., Citibank lost $124 billion, Wachovia lost $77 billion and Bank of American lost $68 billion. We've come a long way since those days.
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