Some view Bank Profits as the 'rich getting richer,' but We all win

posted by iHeartMedia's Scott Crowder -

Some Americans get angry when they hear about the banks doing well; conjuring an image of the Monopoly game's "Rich Uncle Pennybags." But if you feel that way, you may be missing the point.

While it's true U.S. banks reported record first-quarter profit, Bankrate.com chief financial analyst Greg McBride says it was mostly due to tax cuts.

"The lion's share of the increase in bank profitability stems from the recent tax law change, if you strip that out the year over year increase in income was under three percent."

McBride says when banks do well, we all do better.

"Rooting against profitability and rooting against particular industries is rooting against the home team."

McBride says banks are not the only ones doing better.

"Some people are finally starting to see some increase in their pay, unemployment is the lowest it's been in years and investors have definitely benefited from this environment -- all of which are positive signs; don't know if we want to reverse any of that."

McBride says when banks do better, we all do -- a rising tide lifts all boats. McBride says we don't want a return to the Obama era where many banks struggled and needed bailouts.

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