the deterioration of the macro-economic environment in the United States, as well as the problems existing in its own management and system, have plunged the American banking industry into a quagmire in this crisis. With the escalation of the housing and credit crisis, in the fourth quarter of 28, the American banking industry suffered its first quarterly loss in 18 years. In the fourth quarter of 28, American commercial banks and deposit-taking institutions lost $26.2 billion, the first quarterly loss since the fourth quarter of 199, and the highest quarterly loss in the 25 years since the FDIC began this statistic. In the whole year of 28, American banks made a profit of $16.1 billion, the lowest since 199, and created $1 billion in 28, down $83.9 billion from 27. 28 was an extremely difficult year for American banks. During this year, the trust activities in American financial markets declined. In 28, the total assets entrusted for management decreased by $1.1 trillion, and the non-managed assets decreased by $3.5 trillion. Net trust income decreased by $1.1 trillion in 28 compared with 27. However, in 28, the transactions generated by both bankruptcy and aid reached the highest level in 15 years. In the whole year of 28, 78 insurance institutions were merged into other institutions, 292 were merged, 25 commercial banks and storage institutions were closed, and 5 large institutions were rescued, which is also the largest number of institutional closures and rescue transactions since 1993. Among about 8,5 commercial banks and deposit-taking institutions in the United States, as of the end of the fourth quarter of 28, 252 were listed as "problem banks", much higher than 171 at the end of the third quarter; The "problem assets" of the banking industry (loans overdue for more than 9 days) rose from $116 billion in the previous quarter to $159 billion; Since the beginning of 29. Another 14 commercial banks and storage institutions were closed. The data shows that the profitability of American banks is declining from a historical perspective. From the two indicators of return on capital and return on assets, the return on assets and return on capital of American banks hit the lowest since 1987 in 28. It shows that the American banking industry was seriously affected by the subprime mortgage crisis, and its overall profitability was hit hard in 28. From the overall operating situation in 28, the data show that the total interest income of American commercial banks in 28 decreased by $8,66.7 billion compared with 27, while the net interest income increased only slightly compared with 27, and the non-interest income decreased by 8.1%. Bond income lost $1,48.3 billion in 28. In 27, bonds already suffered losses, but the amount of losses increased significantly in 28. The huge loss of bonds has played a certain role in the decline of profits of American commercial banks. The net profit of American commercial banks was $2,434.1 billion in 28, a decrease of $7,328.9 billion compared with 27. The specific quarterly data changes are as follows: in the first three quarters of 28, there was no loss in net profit, but the profit began to decline from the first quarter, and the decline rate was relatively large, with a decline rate of 58.37% from the first quarter to the third quarter. In the fourth quarter, American commercial banks lost $2,949.7 billion, which led to the lowest annual net profit since 199. In terms of per capita profit, the per capita profit of American commercial banks in 28 was only $12,5, which was 74.95% lower than that in 27. Judging from the situation of commercial banks of different sizes, big banks are still the dominant force in American banking. According to the data in the fourth quarter of 28, there are 512 large banks with assets of more than $1 billion, accounting for 7.23% of all commercial banks, but the profits generated account for 81% of the total bank profits, while the profits generated by medium-sized commercial banks with assets of $1 million and $1 billion and small and medium-sized commercial banks with assets of less than $1 million are 16.9% and 2.2% respectively. The overall profit decline of American banks in 28 was mainly due to the loss or decline of profits of large commercial banks affected by the subprime mortgage crisis. Overall risk prevention ability of American commercial banks. Judging from the capital adequacy ratio, the core capital adequacy ratio in 28 was the lowest since 22, and the risk prevention ability of the banking industry was declining. Judging from the loan loss reserve of American banks, the loan loss reserve of American commercial banks and storage institutions was $6.93 billion in the fourth quarter of 28, more than twice the loan loss reserve of $3.21 billion in the fourth quarter of 27, and the loan loss reserve accounted for 5.2% of the total net operating income. It can be seen that in 27-28, due to the impact of the subprime mortgage crisis, the loan losses and loan reserves accrued in the balance sheet of American banks increased continuously, and the loan loss reserves reached $15,123.5 billion in 28, an increase of $9,392.5 billion over 27. Loan loss reserve is the credit cost of banks. The increase of loan loss reserve shows that the credit cost of banks is increasing, and the credit risk of American banks is increasing.