Oct. 16, 2009 (United Press International) -- The largest U.S. banks with federal bailout funds to prop them up piled on profits in the third quarter in a sluggish economy, quarterly reports show.
Some banks have paid back the billions in emergency government aid, but remain indirect or direct beneficiaries of more than $1 trillion in federal investments in the financial markets or the $787 billion economic stimulus package.
It could be said, the remaining firms on Wall Street are also benefiting from the "survivor effect," of having less competition by making it through the financial meltdown while the likes of Bear Stearns, Lehman Brothers, Merrill Lynch, Wachovia and Washington Mutual (OOTC:WAMUQ) were plowed under in the financial crisis, The Washington Post reported Friday.
In the third quarter, Goldman Sachs (NYSE:GS) posted earnings of $3.19 billion or $5.25 per share, compared to $1.81 per share for the third quarter of 2008.
Profits still mean big bonuses at banks and Goldman has set aside $5.35 billion for bonus pay this year, 84 percent more than a year ago. JPMorgan Chase (NYSE:JPM) said this week it set aside $2.78 billion for commission checks, 28 percent more than a year ago.
