In this video, Motley Fool financial analyst Matt Koppenheffer discusses this earnings season, and why the trends we see coming from the big banks' reports have been bad news for banking bears. He talks about Wells Fargo (NYSE:WFC) and how it's moving in the right direction despite a lower net interest margin, and discusses US Bancorp (NYSE:USB), which faced some similar challenges to Wells Fargo, but was able to improve the quality of its loan portfolio overall. He also highlights a couple of other banks where the earnings picture wasn't that bad, and where the stocks only suffered as a result of investor expectations being too high. This is an overall good sign for the bank recoveryl.

Fool contributor Matt Koppenheffer owns shares of Bank of America. The Motley Fool recommends Goldman Sachs and Wells Fargo. The Motley Fool owns shares of Bank of America and Wells Fargo. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.