U.S. Bank Profits Drop on Loan Defaults

from National Public Radio

Government data shows net income for U.S. banks fell by 25 percent last quarter. Nearly half of all banks reported declines in their earnings because so many homeowners are defaulting on home mortgages as well as credit cards and car loans. But on Wall Street investors, desperate for some good news about the economy, picked up on a hint from the Federal Reserve that it may cut interest rates again. That sent the Dow Jones industrial average up more than 300 points.

Broadcast Dates

• Morning Edition, November 29, 2007