Profit from our Sweat: exploiting the credit spread and fees

As the population works hard to stay afloat, scrimping away money into savings accounts paying just over ZERO percent, Wells Fargo comes out this morning and says they're going to make a "record" profit, claiming an expected 55 cents a share? WOW - where is this profit coming from? The cost for them to borrow money is near ZERO, this has allowed them to increase their profits per home loan from $1000 to $4000. Have credit card rates fallen? NO, I don't think so. Have auto loan rates fallen? No, I don't think so.

These banks are exploiting the population both by not passing on the full extent of saving in borrowing costs and by charging exorbitant fees on customers during times of turmoil.

Bank earnings have also been helped by the recent FASB Mark to Market changes. They will also book earnings from AIG counterparty payments that are coming from taxpayers.

Don't believe the banks are out of the water yet. This is going to be a multi year problem.