Home Breadcrumb caret Economy Breadcrumb caret Economic Indicators Breadcrumb caret Industry Breadcrumb caret Industry News Low margins worry U.S. banks The profit margins for U.S. banks have become wafer thin as the spread between their borrowing and lending rates has shrunk to the levels once seen in the 1950s. With the Federal Reserve’s keeping the interest rate at a historic low, banks are struggling to stay profitable, says a report in the Financial Times. Wells […] By Staff | January 14, 2013 | Last updated on January 14, 2013 1 min read The profit margins for U.S. banks have become wafer thin as the spread between their borrowing and lending rates has shrunk to the levels once seen in the 1950s. With the Federal Reserve’s keeping the interest rate at a historic low, banks are struggling to stay profitable, says a report in the Financial Times. Wells Fargo suffered a sell-off last week when the bank publicly acknowledged it couldn’t find “safe and profitable avenues” to invest leading to a steep drop in its net interest margin. “JPMorgan Chase, Bank of America and Citigroup are all expected to suffer from the same phenomenon in their fourth-quarter earnings this week,” the report added. Also read: AIG may sue U.S. government Canadian banks on acquisition spree HSBC Canada profit drops $20m in Q3 Staff The staff of Advisor.ca have been covering news for financial advisors since 1998. Save Stroke 1 Print Group 8 Share LI logo