Citigroup posts better-than-expected results

You can’t make this stuff up. I certainly can’t. We truly have entered the twilight zone.

Here is a bank that just received 45Billion in tax payers funds and they have the audacity to say that they have made a profit due to strong trading conditions?

It gets better. These people got 45Billion. Keep that in mind and read the following

“The bank posted a first-quarter loss to common shareholders of $966 million after massive loan losses and dividends to preferred stockholders.”

You probably can’t remember because you probably couldn’t be bothered… yet… because I guarantee you will be bothered in the imminent future. Nonetheless, do you remember the small matter of the government unliaterally giving Citi a 45Billion lump sum of our money for preferred shares? Do you also remember that for some unexplained reason those preferred shares were converted to common shares? If you do remember that, read the above excerpt again.

However, before paying those dividends, which were tied to the government’s investment in Citigroup, the bank earned $1.6 billion.”

Anyway, the bank earned 1.6Billion after having received 45Billion AND after having received government guarantees on many times that amount. And the stock price quadruples???

Does anyone worry that Citi is showing these results by exploiting an accounting rule (tailor made so that banks can carry on looting unhindered) that says that banks in distress can claim their assets are worth what they say they are worth rather than what they can sell the assets for? Or that they can book the loss of value of their debt as profit?????

Of course Citi is not the only bank allowed to play fast and lose with the rules. Here’s the skinny on Wells Fargo and so it goes for all the others…

I’m not posting anything that is the result of exotic and arcane research. This is information that is readily available to anyone that wants to read it.

If this is not the twilight zone, I am well and truly lost if not f@#ked… and you guys along with me…


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