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commentary on Politics and a little bit of everything else

CitiGroup following the Bank of America and JPMorgan Chase… returns to profitability ……

And why am I not surprised?

While all of the banks took a beating…..the Stimulus loans and Government assistance programs have put them back on their feet along with the recovery in Europe…..

As the Dog has said during the dark days of last fall……

These things are cyclcal….and no matter what..the banks will be saved……

As for the future…..

Well lets ee what the Democrats can get passed in financial reform….

He, he, he……I say this  again,  though…..

What ever’s passed will only take the backroom boys and girls about ten minutes to figure out how the bank can get around it……

After nearly two years of being drenched in red ink, Citigroup provided the strongest signs yet that the troubled bank is beginning to recover as it reported a $4.4 billion profit in the first quarter.

The earnings, which handily beat analyst expectations and were the bank’s best since the financial crisis began, were the result of the resurgence in the bond market and improvements in the economy, particularly overseas. Both play to Citigroup’s strengths as a major player in fixed income and emerging markets, and come as some of its rivals benefited from similar trends. JPMorgan Chase andBank of America both reported big first-quarter earnings from hefty trading profits and from adding less money to their loan loss reserves.

For Citigroup, however, the promise of a turnaround has always seemed more distant. Just over a year ago, its chief executive,Vikram S. Pandit, was staring at losses so big that the bank received two helpings of bailout money and gave the government a 27 percent ownership stake. It posted multibillion-dollar losses in eight out of its last nine quarters. Citigroup shares briefly traded below a dollar.

Today, however, the stock has started to rebound with shares 6.9 percent higher, to $4.86 on Monday. The Treasury Department has signaled that it will soon begin selling its 7.7 billion shares, and after two years on the job, Mr. Pandit is making progress on slimming down the bank.

More……..

April 19, 2010 Posted by | Breaking News, Government, Law, Media, Men, Other Things, PoliticalDog Calls, Politics, The Economy, Updates | , , , , , | 1 Comment

Sending the Senate Finance staff to talk to the Banks about being taxed is lunacy……

Ok…When I read this I couldn’t stop laughing…..Ha, ha, ha…….

Why would send staffers to talk to bankers about taking their money away in more taxes?…..

Why…or who…. would think they would be happy to talk about THAT?

Only politicians in DC….. would even think about doing something like that…….

Senate Finance staffers on Friday met with bank executives for informal discussions on creating a tax on banks and left the meeting frustrated as executives effectively questioned how the tax could work, sources said.

The conversation lasted more than two hours and focused primarily on President Barack Obama’s charge to Congress to create a fee that would stop financial firms from taking on too much risk.

Financial executives seriously questioned the effectiveness of tax and warned it might create other headaches. They also asked about the underlying policy goal behind the initiative since, at least publicly, it seemed to punish firms from the recent collapse of the financial markets.

Apparently, no Republican members support the creation of the tax and Democratic members are unsure how to move forward on the issue.

Participants at the meeting included representatives from the American Bank Association, SIFMA, and executives from insurance companies that trade annuities.

It is unclear how the Senate will move forward on the tax.

He, he, he….these are the first two comments to the piece…..

Comments (6)

Too funny and scarey too. The clueless, taking orders from the clueless, interrogating financial experts, end up getting questioned and totally lack answers? ….. on 03/12/2010 at 22:27

Sending ill prepared children to do a grown-ups work. That makes no sense, just like most all of this juvenile administrations childish work efforts. What a utter waste of a presidency. Shame on American voters. Come on November to Remember. ……..on 03/13/2010 at 09:47

March 13, 2010 Posted by | Blogs, Breaking News, Counterpoints, Government, Law, Media, Other Things, PoliticalDog Calls, Politics, Taxes, The Economy, Updates | , , | Leave a comment

Bank Empolyees will get Bonsus money….One way…… or another…..

I have said this time again…Everytime the Government puts up a rule, regulation or law to take away their money…they will eventually find a way around it……

This is a capitalistic country…poeple work to make money……and unlike in Russia where the government takes cut or you land in jail…America’s Banks will find a way…..Bet on it!

Despite their tough talk about clamping down on pay, banks and securities firms are using other financial perks to ease the toll on employees.

Bank of America Corp. and Citigroup Inc. are doling out shares that employees can sell within months—much sooner than normally allowed. Other giant banks, including Goldman Sachs Group Inc. and Royal Bank of Scotland Group PLC, let certain employees borrow money to relieve personal cash crunches. And some U.K. banks have considered raising base, or cash salaries—funds that won’t be subject to the country’s new 50% tax on bonuses.

Such moves are a contrast to concessions recently made by large financial firms in hopes of defusing public anger, and political retaliation, over the comeback of sky-high compensation. Many banks and securities firms are paying bonuses with a bigger percentage of stock. Goldman, for example, sharply reined in pay and benefits during the fourth quarter. This week, the firm told partners that 60% of their 2009 bonuses will be in the form of restricted stock.

Some of Citigroup’s stock awards are almost as liquid as cash.

The new pay culture is squeezing bankers with hefty mortgage payments and private-school tuition bills—and has prompted some companies to find ways to assist cash-squeezed employees.

“I know it sounds ridiculous to Main Street, but it’s a hardship,” says Gary Goldstein, who runs Whitney Group, a financial-services job-search firm in New York. “So firms are trying to help out any way they can.”

Here’s the link……

January 28, 2010 Posted by | Government, Law, Media, PoliticalDog Calls, Politics, Taxes, The Economy, Updates | , , , | 1 Comment

The President tries to get the Banking Industry 'back in the bottle' with Restrictions….and get back on top….

President Obama….trying to regain the high ground…is going back to safe ground, and beating up on the Bankswhich everyone hates……

President Barack Obama proposed Thursday new rules designed to restrict the size and activities of the U.S.’s biggest banks, the latest in a series of administration moves to curb Wall Street.

The White House wants commercial banks that take deposits from customers to be barred from investing on behalf of the bank itself—what’s known as proprietary trading—and said the administration will seek new limits on the size and concentration of financial institutions.

“My resolve to reform the system is only strengthened when I see a return to old practices at some of the very firms fighting reform; and when I see record profits at some of the very firms claiming that they cannot lend more to small business, cannot keep credit card rates low, and cannot refund taxpayers for the bailout,” President Obama said Thursday. “It is exactly this kind of irresponsibility that makes clear reform is necessary.”

The President must be a bit shaken up because he has Paul Volcker back by his side…the first time in year, since Volcker was shuttled aside in favor of Geithner and Bernanake…two guys who have their own current public relations trouble……The President…..a rookie, and a little unsteady these days, is reaching back finally, in a Bill Clinton sort of way, after realizing that he was trying do a bit too much of’ ‘Change ‘for the politcal process in shock from the economy  to swallow….look for some more slowing of things, in days to come…..and more political maneuvering…..

I just know Bill Clinton has been on the phone to Obama……Healthcare and too much too soon?.

Just like Clinton term one….

And the campiagn…when in trouble…. go on the offense……

January 21, 2010 Posted by | Breaking News, Government, Law, Media, Men, PoliticalDog Calls, Politics, Polls, The Economy, Updates | , , , , , | 12 Comments

The President tries to get the Banking Industry ‘back in the bottle’ with Restrictions….and get back on top….

President Obama….trying to regain the high ground…is going back to safe ground, and beating up on the Bankswhich everyone hates……

President Barack Obama proposed Thursday new rules designed to restrict the size and activities of the U.S.’s biggest banks, the latest in a series of administration moves to curb Wall Street.

The White House wants commercial banks that take deposits from customers to be barred from investing on behalf of the bank itself—what’s known as proprietary trading—and said the administration will seek new limits on the size and concentration of financial institutions.

“My resolve to reform the system is only strengthened when I see a return to old practices at some of the very firms fighting reform; and when I see record profits at some of the very firms claiming that they cannot lend more to small business, cannot keep credit card rates low, and cannot refund taxpayers for the bailout,” President Obama said Thursday. “It is exactly this kind of irresponsibility that makes clear reform is necessary.”

The President must be a bit shaken up because he has Paul Volcker back by his side…the first time in year, since Volcker was shuttled aside in favor of Geithner and Bernanake…two guys who have their own current public relations trouble……The President…..a rookie, and a little unsteady these days, is reaching back finally, in a Bill Clinton sort of way, after realizing that he was trying do a bit too much of’ ‘Change ‘for the politcal process in shock from the economy  to swallow….look for some more slowing of things, in days to come…..and more political maneuvering…..

I just know Bill Clinton has been on the phone to Obama……Healthcare and too much too soon?.

Just like Clinton term one….

And the campiagn…when in trouble…. go on the offense……

January 21, 2010 Posted by | Breaking News, Government, Law, Media, Men, PoliticalDog Calls, Politics, Polls, The Economy, Updates | , , , , , | 12 Comments

The Banks are at it again…..New features, fee's and cost's for you and me…..

While Congress puts in place new rules…the Banks simply switch over to new policies and services…just switching were, and why you’re going to still pay them more money….

It’s just a game..and they collect ……

all the time……

January 6, 2010 Posted by | Breaking News, Government, Law, Media, Politics, The Economy | , , , | 1 Comment

The Banks are at it again…..New features, fee’s and cost’s for you and me…..

While Congress puts in place new rules…the Banks simply switch over to new policies and services…just switching were, and why you’re going to still pay them more money….

It’s just a game..and they collect ……

all the time……

January 6, 2010 Posted by | Breaking News, Government, Law, Media, Politics, The Economy | , , , | 1 Comment

Citigroup will repay the Treasury its bailout loan money shortly…..

Citigroup…is the last of the big banks to repay the government the money, and in Citibank’s case, the stock the government purchased almost a year ago…..

The banks have rushed to repay the loans (after getting the Fed and Treasury’s approval to do so) to get out from under the strict control and oversight  they agreed to undergo, as a condition to get the money……

The nation’s taxpayers should be happy……

…..and the economy has seemed to rebounded enough that these banks have been able to once again go to the market to fund these repayment moves……

Not bad for a rookie President and Congress, egh?!

Note:…..The Treasury is claiming that they might make a $13 to $14 BILLION profit from Citibank,  on the loan interest….. payments……

Update:……As of Tuesday December 15, Wells Fargo has won approval  from the Fed, and Treasury to repay it’s TARP loan back, also…..

December 14, 2009 Posted by | Breaking News, Government, Media, Politics, The Economy | , , , | Leave a comment

Great Britian will hit ALL bank bonuses of $40,000 or more, with a one time tax……

Oh, Snap!…..

The tax will levied on the individual bank, which will extract it from the employee’s bonuses…..every bank that operates in the country, domestic and  foreign will have to pay it…all of  them….even if they didn’t get government buy out money……

And dig this…This just came from on government official…..The Chancellor of the Exchequer, one Alistair Darling (with the Labor government backing)…….

Man….There is going to a lot of crying going on across the pond…..

Can you image them doing that here?……Treasury Secretary Geithner, himself..just up and says we’re gonna tax the bonuses of every bank in this country?…Whew..I’d pay to see that one…he, he, he…..

Note:…..There is a prescient for this…they did the same thing back in 1981, under the Thatcher government…..

December 9, 2009 Posted by | Breaking News, Government, Politics, The Economy | , , , | Leave a comment

Banks don’t want credit unions lending more…..

Too damn bad…….

The Banks have complained to Democratic members of the House about their plan to raise the ceiling on the percentage credit unions can lend, from 12.5 percent to 25 percent…..

Banks just want to take your money….and not lend it out……

While making their bosses rich……..

Anybody here feel for the banks?……

Nope !…….

December 5, 2009 Posted by | Government, Politics, The Economy | , , | Leave a comment