There are many myths surrounding the “American banking industry” as it relates to its health and well-being. In that regard, the banking analysis that follows is an attempt to bring clarity as to where the U.S. banking industry currently stands at the end of 2011 and to explain what really took place in the banking environment over the past five years since our latest financial crisis began in 2007.

The facts show that bank bill for the banking industry’s ill-begotten ways of approximately $600 billion has been paid for using three primary methods: (1) by passing less of the bank’s interest spread between lending and borrowing over to its customers; (2) by paying less dividends out to its stockholders; and (3) paying less taxes to the government.

The facts also show that bank equity and bank salaries are now above pre-crisis levels and bank cash on hand is up 150%. Seemingly only bank lending is down.

So don’t cry for me, Argentina. Who ever said that bankers did not know what they were doing?