This article outlines the fact that U.S. banks earnings might be down slightly from the first quarter of 2011. While this may be true is should be a pretty strong quarter overall and it should augur for further growth for the large banks. Costs are still elevated from the mortgage problems and net interest margins are low. Trading revenue is not going to be like it used to be so the banks need to keep adjusting particularly through generating more fee revenue streams. The article does correctly note that the banks are cheaper in relation to tangible book value then they were last year because these are profitable companies trading like they are going out of business. To look at these companies on a quarter to quarter earnings basis makes no business sense whatsoever, as the issue that matters to investors is what the banks will look like moving forward. With record high capital ratios, and far stronger loan portfolios and deposit bases, the future looks bright for equity investors in the banks.