What recession?

[Alf W]

JP Morgan Opens Bank Season With A Bang

The third-quarter earnings season for US banks kicked off with a bang as JP Morgan Chase raked in a £2.3bn profit.

US bank Goldman Sachs reports tomorrow and is seen beating all records for the year so far in an apparent return to business as usual less than a year after the sector went into meltdown.

The figures from Goldman Sachs are expected to put the group's staff on track for a reported £14bn in pay and bonuses this year and there are worries that excessive rewards are already back.

As you were....

[HairyArsedBloke]

Borrow from the US Govt at 0.5% and lend it back to them at 3.5% what a business!

[AtW]

Borrow from the US Govt at 0.5% and lend it back to them at 3.5% what a business!

Who lends at 3.5%? Maybe that and your kidney

[HairyArsedBloke]

Who lends at 3.5%? Maybe that and your kidney

Yield on US treasury bonds.

Banks borrow from the US government at low rates (0.5%) and then go and buy bonds issued by the US govenment (i.e. lend it back to them) paying about 3.5%

[AtW]

Yield on US treasury bonds.

Indeed, I was trying to make a point that banks don't lend these money out to businesses/people at 3.5%.

[HairyArsedBloke]

Indeed, I was trying to make a point that banks don't lend these money out to businesses/people at 3.5%.

So what part of "Borrow from the US Govt at 0.5% and lend it back to them at 3.5%" are you having trouble understanding?

[AtW]

So what part of "Borrow from the US Govt at 0.5% and lend it back to them at 3.5%" are you having trouble understanding?

Fair enough, missed "them" in initial post - very tired now and still working