The article looks at how banks in the US manage their earnings, comparing public and private banks. They use discretionary loan-loss provisions to see how banks manipulate their reported earnings. The study finds that public banks tend to manipulate their earnings more than private banks. Public banks use these provisions to give investors private information, while capital requirements also affect how banks manage their earnings. Banks with low earnings tend to decrease their reported earnings, while those with high earnings tend to increase them. This research helps us understand why banks might manipulate their earnings and how this can impact investors.