Re: Obama XI: Turn And Face The Strange
What crisis? banks are making record profits. Goldman few weeks ago and even the crappy citi is making profits when analyst expected them to lose money this quarter.
I'ven't seen anyone get fired at the regulatory agency and non of them have admitted they messed up, instead they are blaming lack of resources and regulatory power.
There is something wrong with this picture... citi has one of the worst balance sheets and they were expected to take a loss, but instead they made $4billion on revenue of $25billion or close to 20% profits.
So they wrote down $5billion for loan losses and had losses in other banking business like credit card etc... but had $8billion profit in trading. Like I said before how can these guys lose money with 0% borrowing cost and when Federal Reserve bank has bought $1.2trillion MBS. We don't have free market... we've controlled markets by the Federal reserve bank to benefit the banking members they serve.
http://finance.yahoo.com/news/Citig...2.html?x=0&sec=topStories&pos=6&asset=&ccode=
I think they should be pro-Wall Street but actually have a regulatory approach that works. We don't need to be a weak economic country, that won't help our long-term situation in the world. The idea that the only alternative to reckless concepts like derivatives is to declare marshall law on all financial activity is an overreaction that will lessen our already declining role in global economics.
What crisis? banks are making record profits. Goldman few weeks ago and even the crappy citi is making profits when analyst expected them to lose money this quarter.
I'ven't seen anyone get fired at the regulatory agency and non of them have admitted they messed up, instead they are blaming lack of resources and regulatory power.
There is something wrong with this picture... citi has one of the worst balance sheets and they were expected to take a loss, but instead they made $4billion on revenue of $25billion or close to 20% profits.
So they wrote down $5billion for loan losses and had losses in other banking business like credit card etc... but had $8billion profit in trading. Like I said before how can these guys lose money with 0% borrowing cost and when Federal Reserve bank has bought $1.2trillion MBS. We don't have free market... we've controlled markets by the Federal reserve bank to benefit the banking members they serve.
http://finance.yahoo.com/news/Citig...2.html?x=0&sec=topStories&pos=6&asset=&ccode=
Citigroup earned 15 cents per share on revenue of $25.4 billion. That easily beat analysts expectations of a slight loss, according to Thomson Reuters.
Overall profit at the bank was driven by the $8 billion Citi made in its securities and banking operations, which includes its trading business. That was up $4.7 billion from the fourth quarter.
Those operations are a part of Citicorp, the division that holds Citi's primary businesses.
Bonds accounted for a big chunk of the trading gain. Like other companies' investment banking operations, Citigroup's benefited from very low interest rates that allowed it to borrow cheaply to buy higher-yielding investments.