It appears that Denninger believes they do. If you agree with Denniger, please explain how they profit.
Denninger and the Dennizens of Ticker forum also think that banks profit from inflation, specifically, the attempted re-flation of the deflating housing market. It's the only way the Too Big To Prosecute Banks & the Bernank can get the garbage mortgages back to the point where they can put them back on their books.
You understand that the Too Big To Prosecute Banks have a giant smoking hole on their balance sheets where the bad mortgage firsts & the bad HELOC seconds should be, except that the TBTPs arm-twisted CONgress into allowing them to mark-to-fantasy for a while, and that fantasy accounting has now been made permanent?
So, the banks NEED inflation to get the mortgage prices back up where they were during the Housing Bubble, so they can offload the trash to new bagholders. So, inflation is GOOD for bank profits.
I'm a Dennizen of the Ticker forums, BTW.