Big Banks Still Playing the Game

After staging one of the most remarkable comebacks in business history — because of taxpayer lifelines and other support from Washington — the giants of the banking industry are entering a new phase of the post bailout period.

While, for many Americans, the dark fears of the crisis have given way to indignation over the Lazarus-like recovery at big banks, few on Wall Street expect 2010 to be as profitable as 2009.

All told, the half dozen biggest banks have already made more than $50 billion in the first three quarters, and are on track to deliver a year of hefty profits — and bonuses — that could rival those of the boom years.

But at this pivotal moment, big questions loom: Will the economy stage a robust recovery or just muddle along? Will the stunning rally in the stock market last?

As the debate rages over how to prevent future crises, will Washington impose tough new rules on banks? More important, will banks fundamentally change the way they do business, or simply carry on as before?