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Brian Chappatta

Biggest Banks Can’t Keep Up With U.S. Money Printing

Bank of America, Citigroup and other retail-facing banks are all experiencing declining loan growth as deposits surge.

It’s hard to compete with the printing press.

It’s hard to compete with the printing press.

Photographer: Andrew Harrer/Bloomberg

Bank of America Corp. is struggling to compete with the money-printing presses of America. 

The bank’s first-quarter results on Thursday showed a 47% increase in net income from the previous three months to $8.1 billion. Much like Citigroup Inc., which just a few hours later posted a record profit thanks in part to a $3.9 billion release from credit reserves, Bank of America benefited from a similar boost to its bottom line as fiscal and monetary support from U.S. policy makers helped to stave off the worst-case scenario for many individuals and businesses across the country. “Credit costs improved and we believe that progress in the health crisis and the economy point to an accelerating recovery,” Bank of America Chief Executive Officer Brian Moynihan said.