Despite Current Profits, Banks Real Test is Yet to Come

U.S. banks have returned to profit in the first quarter, after dismal 2008 and in particular a disastrous fourth quarter. But these profits are only on paper while the reality is completely different, warn a number of economists.

Major Banks in the United States say that they are on the point of return and is rushing to return money received from the state to make face the crisis broke out in September after the bankruptcy of Lehman Brothers.

The five of them were in first quarter on profit, shares and prices are rising, KBW Bank Index and the doubling of March 6. U.S. Treasury Secretary Timothy Geithner stated at the beginning of May, after implementation of stress tests designed to determine the capacity of 19 banks to face the deterioration of economic conditions, as Americans can be confident in the stability and soundness of banks.

However, this return could be short, writes Bloomberg. Analysts who have examined quarterly profits and government tests say that the changes made in terms of accounting rules and optimistic estimates make institutions to seem stronger than they are.