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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……..

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

JP Morgan working on a $1.4 Billion tax refund…….and there are others…..

[chase]

No Shit!?

$1.4 Billion???

The same guys that made a boat load of money just before the bottom fell out?

Didn’t they make a lot of money recently?

J.P. Morgan Chase & Co. is nearing a deal that would allow it to benefit from a tax refund of as much as $1.4 billion, becoming the latest company to tap a little-noticed plank in an economic stimulus bill.

That law let companies apply losses from 2008 or ’09 against taxes paid in the previous five years, instead of the previous two years. Failed Seattle thrift Washington Mutual is eligible for about $2.6 billion in tax refunds, thanks to big losses in 2008. Now J.P. Morgan, which took over WaMu’s banking operations in September 2008, is in discussions with the Federal Deposit Insurance Corp. and bondholders about the refund.

According to people familiar with the talks, an agreement under discussion would let J.P. Morgan claim more than half of the total, to be held in an FDIC receivership as part of a larger settlement with bondholders. J.P. Morgan could dip into that pot to satisfy certain claims related to WaMu’s collapse.

Many other companies have benefited from the 2009 tax-refund law already. According to an analysis of securities filings by The Wall Street Journal, more than 250 companies have so far said they expect to get about $12 billion in federal tax refunds under the law.

That remains a partial list. The Joint Committee on Taxation, a congressional committee, estimated the provision would cost $33 billion in its first year.

Some critics have found the corporate-tax-refund technique wanting as a stimulus or job-creation move. Prior to Congress’s passage of the $787 billion stimulus law in early 2009, the Congressional Budget Office looked at six possible stimulus approaches and ranked this one least effective, saying each corporate tax dollar refunded would generate at most 40 cents of boost to gross domestic product. The corporate-tax-refund approach wasn’t included in the big stimulus bill early in the year, but was part of legislation in November that extended jobless benefits.

He, he, he….so they forgot to add it…but got it back in anyways?

Ah, the gift that keeps giving…..To Big guys anyways……..The U.S. Treasury….the same people we gotta pay….

More…….

March 24, 2010 Posted by | Breaking News, Counterpoints, Government, Law, Media, Other Things, PoliticalDog Calls, Politics, The Economy, Updates | , , , | Leave a comment