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Commuters are reflected in stone as they walk past the JPMorgan headquarters in New York in this May 17, 2012, file photo.
Commuters are reflected in stone as they walk past the JPMorgan headquarters in New York in this May 17, 2012, file photo.
(EDUARDO MUNOZ/REUTERS)

Shrinking U.S. bank loan losses offer lots of hope

Don’t listen to the naysayers – lower U.S. bank loan losses should be welcomed.

This week a slew of U.S. banks reported solid second-quarter earnings, instilling more confidence in the American banking system. But the doubters still argue that too much of these profits come from lower credit provisions, creating accounting gains rather than hard dollars.