Profits at the nation's FDIC-insured banks took a dip during the most recent third quarter — the first decline since 2009 — as mortgage lending faltered due to higher rates. The LA Times has more:
The third-quarter profits also were $1.5 billion less than in the same period a year earlier, ending a streak of year-over-year increases that began when the Great Recession ended in mid-2009.
Profits were hurt by a jump in interest rates after Federal Reserve officials indicated they were preparing to reduce the central bank's bond-buying stimulus program….
Mortgage originations were down 30% in the third quarter from the previous quarter, the FDIC said. And the end to a long period of historically low interest rates makes for "a tricky environment" for banks, Gruenberg said.
