U.S. banks profitability after the 2007/2008 crisis

Vol. 38 No. 3 (2018)

Jul-Sep / 2018
Published February 26, 2020
PDF-Portuguese (Português (Brasil))
PDF-Portuguese (Português (Brasil))

How to Cite

Bulhões Cecilio, Marco. 2018. “U.S. Banks Profitability After the 2007/2008 Crisis”. Brazilian Journal of Political Economy 38 (3):414-33. https://doi.org/10.1590/0101-3157-2018-2792.

U.S. banks profitability after the 2007/2008 crisis

Marco Bulhões Cecilio
Doutorando em Economia Política Internacional no Instituto de Economia da Universidade Federal do Rio de Janeiro, RJ - Brasil.
Brazilian Journal of Political Economy, Vol. 38 No. 3 (2018), Jul-Sep / 2018, Pages 414-433


This paper aims to evaluate the profitability of the major American banks after the crisis of 2007/2008, as well as to seek preliminary explanations to the results found. To do so, it assesses the historical data from 1932 until 2015. The results show that the share of total profits in the American economy captured by the financial sector has reduced compared to the peak of the last decade but is still at a higher level than the post-war baseline. The evidence points to the decrease of leverage by regulatory pressure as the main cause of the reduction.

JEL Classification: E01; G21; N22

Keywords: profitability 2007-2008 crisis banks sell side Financial sector