MichaelNW

Buffett's Latest Headache: U.S. Bancorp

Those who focus on the drop in income are missing the "Provision for credit losses exceeded net charge-offs by $635 million, resulting in an increase to the allowance for credit losses equal to 100 percent of net charge-offs for the quarter."

USB credit losses were more than covered by funds set aside to cover for them. This speaks to the bank having a better loan portfolio than they are currently getting credit for.