Bank of America

Shareholders like their corporate boards stocked with independent directors—men and women unencumbered by close ties to the company or its executives.

It has been a big week so far for the market cops at the Securities & Exchange Commission: Each day brought a new multimillion-dollar settlement, most involving high-profile people or companies—Bank of America (BAC), General Electric (GE), and two former executives of American International Group (AIG), plus two smaller trading firms.

Regulators, investors, and policymakers are breathing a sigh of relief about the banks. Profits are up. Bank share prices are surging. And on June 9 Uncle Sam gave 10 banks the go-ahead to pay back $70 billion in bailout funds. "These are early signs of repair and improvement," Treasury Secretary Timothy F. Geithner said in a press briefing.

That didn't take long. The economy hasn't yet recovered from the implosion of risky investments that led to the worst recession in decades—and already some of the world's biggest banks are peddling a new generation of dicey products to corporations, consumers, and investors.

At first glance, banks seem to be recovering nicely from the financial crisis. But investors cheered by optimistic earnings reports could soon face a painful surprise.

Rosel Patton, a 49-year-old switch engineer in Marlboro, Mass., doesn't realize it, but when she saves for retirement by contributing to her 401(k), she's also helping her company save money.

The loud message comes from one company after another: Surging health-care costs for retired workers are creating a giant burden. So companies have been cutting health benefits for their retirees or requiring them to contribute more of the cost.

Some of America's biggest banks -- including Bank of America Corp., J.P. Morgan Chase & Co., and Bank One Corp. -- hold billions of dollars in so-called janitors insurance on their present and former employees. But investors may have a hard time finding much information in their Securities and Exchange Commission filings.