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-	FAIRNESS played a central role in Barack Obama's state-of-the-union address, and I suspect it will play a central role in the president's re-election campaign. But what does Mr Obama have in mind when he deploys the f-word? It may not be the case that fairness is, as Scott Adams, the creator of Dilbert, puts it, "a concept invented so dumb people could participate in arguments". But it cannot be denied that fairness is an idea both mutable and contested. Indeed, last week's state-of-the-union address seems to contain several distinct conceptions of fairness worth drawing out and reflecting upon.	+	Bank of America has reported a $2bn (�1.2bn) profit for the three months to the end of 2011, compared with a $1.2bn loss in the same period in 2010.
-	Toward the beginning of his speech, as Mr Obama was trying to draw a parallel between post-second world war America and today's post-Iraq war America, he offered this rather stark choice:	+	It signals continued recovery for the US' second biggest lender.
-	We can either settle for a country where a shrinking number of people do really well while a growing number of Americans barely get by, or we can restore an economy where everyone gets a fair shot, and everyone does their fair share, and everyone plays by the same set of rules.	+	For the full year, the company reported net profits of $1.4bn compared with a net loss of $2.2bn in 2010.
-	Here we have three distinct conceptions of fairness in a single sentence.	+	Meanwhile Morgan Stanley, the world's largest broker, reported a fourth-quarter loss of $250m compared with a profit of $836m a year earlier.
-	To get a "fair shot" is to be offered the opportunity to participate fully and succeed within the country's institutions. This is, I think, the least controversial conception of fairness in America's political discourse. Conservatives who strenuously object to the idea that the American system should aim at "equality of outcomes" will sometimes affirm "equality of opportunity" as an alternative. But this is a mistake. To really equalise opportunity requires precisely the sort of intolerably constant, comprehensive, invasive redistribution conservatives rightly believe to be required for the equalisation of outcomes. If one is prepared to accept substantial inequalities in outcome, it follows that one is also prepared to accept substantial inequalities in opportunity.	+	Despite the loss, the results at Morgan Stanley beat analysts' expectations since it was able to increase its share of the equity trading market in the period.
-	Getting a fair shot doesn't require equalising opportunity so much as ensuring that everyone has a good enough chance in life. The content of "good enough" is of course open to debate, but most Americans seem to agree that access to a good education is the greater part of a "good enough" and thus fair shot. Naturally, there is strong partisan disagreement over the kinds of education reform that will do right by young Americans.	+	For the full year, Morgan Stanley said its net revenues were $32.4bn compared with $31.4bn in 2010.
		+
		+	Recent results from American banks have been mixed with Goldman Sachs announcing on Wednesday that it made 47% less in profits than in 2010 whilst Citigroup posted a 6% rise on the previous year.
		+
		+	Bank of America chief executive Brian Moynihan said: "We enter 2012 stronger and more efficient after two years of simplifying and streamlining our company."
		+
		+	"Reflecting a gradually improving economy," continued Mr Moynihan, "we saw solid business activity by companies of all sizes, with commercial and industrial loan balances rising."
		+
		+	Bank of America was one of the worst performers on Dow Jones Industrial Average index of leading companies in 2011, losing 58% of its share value over the year.
		+
		+	The lender has been hit by lingering concerns about bad mortgage loans on its books in the wake of the 2008 sub-prime crisis when it was bailed out by the US government.
		+
		+	The bank has been building up its reserves, known as Tier 1 capital, to protect itself against the risk of further bad loans.
		+
		+	"Our fourth-quarter results reflect the aggressive steps we have been taking to strengthen the balance sheet and position the company for long-term growth," said chief financial officer Bruce Thompson in a statement.
		+
		+	"During the quarter, we significantly increased capital and liquidity. For 2012, our focus is to continue to build capital and liquidity and manage expenses."

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Revision as of 23:58, 2 November 2012

Bank of America has reported a $2bn (�1.2bn) profit for the three months to the end of 2011, compared with a $1.2bn loss in the same period in 2010.

It signals continued recovery for the US' second biggest lender.

For the full year, the company reported net profits of $1.4bn compared with a net loss of $2.2bn in 2010.

Meanwhile Morgan Stanley, the world's largest broker, reported a fourth-quarter loss of $250m compared with a profit of $836m a year earlier.

Despite the loss, the results at Morgan Stanley beat analysts' expectations since it was able to increase its share of the equity trading market in the period.

For the full year, Morgan Stanley said its net revenues were $32.4bn compared with $31.4bn in 2010.

Recent results from American banks have been mixed with Goldman Sachs announcing on Wednesday that it made 47% less in profits than in 2010 whilst Citigroup posted a 6% rise on the previous year.

Bank of America chief executive Brian Moynihan said: "We enter 2012 stronger and more efficient after two years of simplifying and streamlining our company."

"Reflecting a gradually improving economy," continued Mr Moynihan, "we saw solid business activity by companies of all sizes, with commercial and industrial loan balances rising."

Bank of America was one of the worst performers on Dow Jones Industrial Average index of leading companies in 2011, losing 58% of its share value over the year.

The lender has been hit by lingering concerns about bad mortgage loans on its books in the wake of the 2008 sub-prime crisis when it was bailed out by the US government.

The bank has been building up its reserves, known as Tier 1 capital, to protect itself against the risk of further bad loans.

"Our fourth-quarter results reflect the aggressive steps we have been taking to strengthen the balance sheet and position the company for long-term growth," said chief financial officer Bruce Thompson in a statement.

"During the quarter, we significantly increased capital and liquidity. For 2012, our focus is to continue to build capital and liquidity and manage expenses."