Bank Profits Mask Peril Still Lurking

Source: The Washington Post

Citigroup announced a surprisingly strong first-quarter profit yesterday, the latest bank to report a sharp improvement from the disastrous final months of 2008.

The earnings bloom, however, is probably a false spring, according to bank executives and financial analysts. Banks rise and fall with the economy. As prosperity recedes, more people and companies are defaulting on loans. The nation and its banks still face grave challenges, they said.

"We don't see the light at the end of the tunnel," Edward "Ned" Kelly, Citigroup's chief financial officer, said in an interview, referring to the state of the economy. His company, the most troubled of the large banks, reported that defaults increased during the first quarter on nearly every kind of consumer loan.

J.P. Morgan Chase also announced strong earnings this week. The company's chief executive, Jamie Dimon, also did not see in those results evidence of recovery.

Read more: http://www.washingtonpost.com/wp-dyn/content/article/2009/04/17/AR2009041700969.html

BULLSHIT YET?

:dem:

:rofl:

Those "earnings" border on fraud. A one-time pop they siphoned off of AIG.

Like Goldman Sachs missing month of December, which had HUGE losses, that weren't reported, because they switched their fiscal year reporting. December, just disappeared.

I'd be claiming a banner quarter, too. As it is, though, my small business got no bailout, hence, no great quarter for my company.

operating profit for one quarter is no cause to par-tay.