Daily News: December 10, 2012

U.S. Banks Increase Holdings of Structured Products

The Financial Times is reporting that U.S. banks have increased their holdings of structured financial products to the highest level since 2009 in an effort to boost profits in the face of continued record low interest rates.

The Times said that banks’ structured finance investments surged to $48 billion in the third quarter of this year, according to data released by the FDIC. That is the highest since the FDIC began breaking out the investments in mid-2009, and a 25% rise on the same period last year.

To read the full Financial Times story, click here.