Bank Of America Comes Back To Earth
Bank of America and Citigroup must be related.
On the heels of Citigroup’s bad financial disclosure yesterday, Bank of America has done the same thing, announcing that they’d lost around $2.2 billion compared to their big profit announcement last quarter. And, like Citigroup, they were able to post that profit because of a major sale, rather than because of their normal business operations.
Once again, I feel vindicated since I called it back in July, saying that I thought both of these profit numbers were false and wouldn’t sustain themselves. I don’t quite trust them either, but I’ve never really thought of them as being as sneaky as I have Citigroup; not sure why, though. After all, they are about to institute an annual fee on cards that have never had them before, starting with 1% of their customers to see how it works before rolling it out on, well, possibly everyone, though they’re not really saying.
Of course, both Citigroup and Bank of America were among many who got bailout money from the government, and some people thought the report they gave in July proved that the bailout money worked. Many others, including myself, didn’t, and what’s being shown now is that the economy is still in trouble, despite the Dow hitting 10,000 yesterday (as I’m writing this, the Dow has fallen again below that figure after bad bank figures, and General Electric not hitting their expected revenue figure, though they still made a profit).
This is going to take some time. I had said that I thought the stock market would start making its turn by the middle of the year, and I called that one. But I’m now starting to think that we’re not going to start hearing good financial news for at least another year to 18 months from now. That’s scary, but I’d rather know now so I can make some decisions, rather than be caught off guard later on.
As for Citigroup and Bank of America,… maybe they should change up their commercials and start begging people to trust them. Then again, it still wouldn’t be me. And Bank of America, as if they needed more publicity, has to deal with this ridiculous lawsuit from a guy who wants $1,784 billion, trillion dollars for a perceived customer service slight. I guess if you’re going to sue someone, go for the gusto.