Daily News: July 25, 2012

CFO: Big Banks Amp Up Investment Risks


CFO.com reported that like nonfinancial companies, financial institutions have loads of liquidity on hand, but unlike nonfinancials, they are once again looking to take risks. And not the lending kind.

The article said that much like J.P. Morgan did prior to its huge trading loss, the largest U.S. commercial banks are increasing the risk exposure in their investment portfolios as those portfolios continue to drive a greater share of earnings, according to Standard & Poor’s in a recent report. S&P noted that the trend could lead to credit-rating downgrades of these banks.

To read the full CFO.com article click here.