Citigroup Finally Makes A Profit
I guess it had to happen eventually.
Citigroup finally announced a quarterly profit after many quarters of massive losses. They reported a profit of $4.4 billion in the first quarter of this year, compared to a $670 million loss at the same time last year. Supposedly they’ve turned the corner because of trading of bonds and equities, as well as their stock price pushing up around 15 cents in the quarter.
Something else they mentioned was that their losses from credit cards and mortgage loans have decreased, although they still have losses. On this front, I’m not sure if it signals that people have more money to pay their bills or if the worst has passed so that there can only be so many people left to still default on loans. And all of us know about some of the changes to credit cards lately.
The federal government is feeling more secure about things, so they’ve announced that they’re going to start selling their $7.7 billion dollars of stock that they got when they gave loan money to the bank. How fast they’ll sell will depend on just how secure they feel Citigroup is. After all, even with this great report, their stock price did drop last Friday, as did the price of other banks and financial institutions after the SEC announced it was charging Goldman Sachs with fraud.
For now, I’ll allow Citigroup its good news; it’s about time.