Citigroup loss is smaller than expected on accounting rule changes

April 17, 2009 by · Leave a Comment
Filed under: Stock Market News 

BARF BLAHHHHH (excuse me), I can’t take this any more.  We mangled the mark-to-market accounting rules and now I am seeing positive spin on lesser losses from the Bailout King Citigroup.  Where is the outrage?  I am not going to gone on harping about this one.  If you have been following my writings then you know where I stand.   I will leave you with a suggestion that everyone watch “Bill Moyer’s Journal” with Bill Black (Former S&L Regulator).  He really sums it up, this crisis is disgusting me and I think its time to stand and take this country back to the RULE OF LAW and stop these financial oligarchs.

News (Reuters):

Citigroup Inc reported a smaller-than-expected first-quarter loss for shareholders as cost-cutting and improved investment banking and trading results helped offset red ink from consumer banking and credit cards.

The third-largest U.S. bank on Friday joined Goldman Sachs Group Inc, JPMorgan Chase & Co and Wells Fargo & Co in signaling that massive government efforts to jump-start the ailing economy are helping boost bank earnings, though the industry’s problems are far from over.

“The bulk of the writedown in Citigroup’s toxic assets are probably behind them,” said Marshall Front, chairman of Front Barnett Associates LLC in Chicago, which invests $500 million and is buying Citigroup stock. “But there are obviously huge hurdles ahead with respect to the credit cycle that will provide strong headwinds.”

Citigroup also said it will delay a planned exchange of $52.5 billion of preferred shares into common stock, but will not change the terms.

That news pushed Citigroup shares down 15 cents, or 3.7 percent, to $3.86 in afternoon trading as investors braced for the issuance of more shares at a lower price. Citigroup has taken $45 billion of taxpayer money in a series of bailouts.

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