All because they love you, buddy!
"At Citigroup, the bank reported a fourth-quarter profit of $1.2 billion.... Citigroup, the third-biggest US bank, rose on an unexpected profit increase to $3.94 billion.... On Monday, the bank reported second-quarter results that beat Wall Street’s expectations, earning Mike Corbat praise from analysts who said he is steering the bank in the right direction. Strong results from investment banking helped Citi’s April-to-June results, and the bank benefited from setting aside less money for potential bad loans. Profit shot up 26 percent after revenue rose 8 percent. Profit for the period was $3.9 billion....
They reserve the right.... to keep the stock price high!!!!
Citigroup said its quarterly net income for the July-to-August period fell to $3.26 billion....
That sweeps up the look at the profit report.
Citigroup to reduce workforce by 11,000
A bold early move by new chief executive Michael Corbat.
Jobs Sweep
All clean!
"Citigroup’s ex-CEO does an about-face on big banks" by Christian Rexrode | Associated Press July 26, 2012
NEW YORK — It is an idea that’s traditionally more in line with the banking industry’s harshest critics, not its founding fathers. It is an ironic twist coming from an empire-builder who made Citigroup into a behemoth. And it is directly opposed to the stand of the industry’s current leaders, such as JPMorgan chief executive Jamie Dimon, who have been trying to persuade regulators and lawmakers that big banks do not need to be split.
Speaking on CNBC’s ‘‘Squawk Box,’’ Sandy Weill, 79, said the radical change is necessary if US banks want to rebuild trust and remain on top of the world’s financial system. Weill also criticized banks for taking on too much debt and not providing enough disclosure about what’s on their balance sheets.
‘‘Our world hates bankers,’’ he said.
They brought it on themselves with their avarice.
Big banks have been villainized in the financial crisis and its aftermath.
Not in my news pages.
Critics blame them for risky trading that created a housing bubble and eventually led to global economic upheaval. In some circles, there’s still resentment that the government used taxpayer money to give bailout loans to the biggest banks, including Citigroup, because regulators thought that the financial system would not be able to handle their failure.
But standalone investment banks, Weill said, wouldn’t take deposits, so they wouldn’t be bailed out. Banks that have both investment banking and consumer banking say it’s necessary to keep them together because they balance each other, ensuring stability no matter the economy.
Investment banking, which offers services such as trading stocks and packaging loans into securities, can be spectacularly profitable in good times and spectacularly unprofitable in bad times. Consumer banking, the plain-vanilla business of making loans and accepting deposits, generally offers a steadier, if slower, way to make profits.
Until the late ’90s, the Glass-Steagall Act largely kept consumer banks and investment banks separate. Glass-Steagall was created during the Great Depression. The separation rules were repealed in 1999.
Liz Warren submitted a new bill for reenactment, but it has gone nowhere and no one is complaining.
Weill’s professed conversion set off a flurry of reactions....
--more--"
Related:
"Citigroup also disclosed it has received requests for documents from the attorneys general of New York and Connecticut related specifically to Libor inquiries. Coakley’s office has also been delving into the Libor interest-rate-rigging scandal."
I haven't said much about that in a while, but it's time to face up to things.
Mass. gets $55m from Citigroup
Citigroup to pay $7b in subprime mortgages probe
They can cover that based on profit.
Citigroup to pay Fannie Mae $968m to resolve claims
Citigroup to settle suit for $730m
I'll bet they are prepared for the next one, too.
Court limits judge’s say over $285m Citigroup deal
Think of it as an order from a higher power.
