Citigroup, GE Losses Less Than Expected

Citigroup Outperforms Last Year's 1Q; Meanwhile, GE's Earnings Fell 36 Percent

(CBS/ AP)  Citigroup says the first quarter of 2009 was much better than last year's.

The bank is reporting a loss to common shareholders of $966 million after massive loan losses and dividends to preferred stockholders.

But before paying those dividends, the bank is posting net income of $1.6 billion.

There has been a growing sense on Wall Street that the economy is starting to stabilize. But investors are looking to first-quarter earnings reports for confirmation that business conditions are improving.

However, Thursday's dismal jobless claims and housing reports showed that the economy has a long way to go before Main Street's financial health is restored, Bloomberg's Deirdre Bolton reported for CBS'The Early Show.

General Electric Co. says its first-quarter earnings fell 36 percent on sharply lower profits at its troubled finance arm, but the results beat Wall Street forecasts in a glimmer of good news for the struggling company.

GE, which has a stake in almost every large sector of the economy, from light bulbs to locomotives, had earnings from continuing operations of $2.9 billion or 26 cents per share. That surpassed the 21 cents per share forecast by analysts.

GE had net income of $2.7 billion, down from $4.3 billion, or 43 cents per share, a year earlier.

As for Citigroup, its overall results are better than expected. The company reported a loss per share of 18 cents, which was narrower than the 34 cents analysts predicted.

A year ago, Citigroup suffered a loss of more than $5 billion.

Citigroup has been one of the weakest of the large U.S. banks. But in March, CEO Vikram Pandit triggered a stock market rally after he said that January and February had been profitable for Citigroup.

[whitemale08]

WHAT PROFIT???

CITIGROUP AND GE ARE BANKRUPT AND DROWNING IN DEBT TO TRILLIONS IN WORTHLESS DERIVATIVES AND CREDIT-DEFAULT SWAPS!!!

PUT THESE SILLY COMPANIES INTO RECEIVERSHIP AND PRE-PACKAGED BANKRUPTCY RE-ORGANIZATION NOW!!!

NO MORE F*CKIN' BAILOUTS!!!

[skyk-2009]

When did people start to notice that you were... ya know... different?
Posted by ghostfighter-2009 at 6:51 AM : Apr 17, 2009

Good question there Rowdy!!

[skyk-2009]

Actually, texass anna, what is priceless, is your inability to understand that the TARP was requested by paulson and bush in Oct. 2008, in a total panic. Benanke, as Fed chairman, was able to inject hundreds of billions into the markets by the 1932 law, without any congressional approval. You better stick with the facts, instead of revising history to give the bush monkey a free pass!

BTW, how's that texass secession working for you?
Posted by evilbusheviks at 7:33 AM : Apr 17, 2009

LOL This is news? LOL These clowns have been doing this now for 150 years or better! Don't like the way its going? Looks like you are going to end up on the losing side? Re-write the Problem. LOL Why else do you think these clowns fly the Confederate Flag Today. They will tell you in a minute that the Civil War wasn't about the Slavery but about the Right of the States... They somehow gloss over the fact that the "RIGHT" being taken away from some states and denied new states was the RIGHT to own Humans as Property. LOL

[WayAround]

Rowdy106 wrote: "they're starting to slowly reveal the HOAX!"

axiom0001 wrote: "if I didn't check my account once a month I would be charged ~$20 fee"

Brought to you by the International Mafia, a group of Czechoslovak emigrants who settled primarily in Canda.

[ubrew12]

Citibank and GE, two companies that gambled themselves into the toilet with derivatives, are now showing signs of earnings life, thanks to the TARP, err, I mean, to their hard work and fiscally responsible business plans.

Why can't the government give me $20 billion? I promise to show a profit next quarter.

[jusfall1]

As I am reading these blogs, it seems to me that either people blame the democratics or the republicians. It is not one certain party, it is a combination of both. The real issue here is Lost Notes and the underground economy. Does anyone know the real meaning behind Lost Notes? What if people were to realize that they don't own their houses, even though they keep the mortgages up and pay the taxes. Talking about a revolt, there will be one when this comes out. (Peasant's Revolt should now be the Working People's Revolt).

[jusfall1]

Sorry , for the incorrect spellings of there, should be their......

[jusfall1]

I guess Citigroup did make a profit in the first quarter. The money came from the taxpayers that they hiked there interest on credit cards from around 13% to 24.99%. My husband lost his job, but found another one making half of what he was use to making. He called them and told him that he couldn't afford to make the payment, and to see if they could lower the interest rate back to what it was. There answer, Ah, No!..So here we are getting double screwed by the banks. They get the bailout money, then turn around and hike up our interest rates. We cut the card up...and will pay them as we get the money. Right now, our focus saving our house, buying medicine and food.

[axiom0001]

What do you think the moratorium on foreclosures was all about -- so they don't have to show all their losses in one quarter. Come on reporters do your job. In any case I have a personal story about Citigroup and why I will never do business with them. I was 13 years old, my parents came to the US couple of years prior. My dad had been a farmer in Africa and my mom a house wife for all their lives ... so as expected they made minimum wage at the time $3.25/hr. My dad worked at a local newspaper printing company and mom worked for an electronic assembly company. For additional income she would take home these large pc boards that the company would pay her $0.01 per component placed in it. I worked for weeks helping her at nights and weekends to make $500 -- $200 was used to buy my bike and $300 was placed in what I thought was a savings account. At this time, I had just learned of compound interest, just let your money sit and it will grow slowly but assuredly. Well I opened a savings account with Citigroup -- little did I know that they had a clause hidden in the contract that if I didn't check my account once a month I would be charged ~$20 fee (yes, the clause required me to physically check my account balance on a savings account for a minor). A year later, when I went to see how much money I had made, I had $115 left in my account. Of course I was furious and caused a huge commotion at the local branch -- but never got my money back.
We should keep our regulatory pressure on these banks and Mr. Obama you made a mistake bailing them out. I understand BofA because they turned down foreign investment to reinvest in the USA but citigroup and some of the others should be pushed into bankruptcy. They are no friends to the taxpayers out there.

[tn312c]

Have been hearing this past few days about companies getting public help are making profits. But, Citi is not doing as well per this article. How could anyone getting billions in infusions not do well? These companies get money at close to zero percent and then turn around and lend the money at percentage higher than zero percent. Shouldn't they make money?

I think, part of the problem is that all companies, including the ones that are not receiving public help, are being weighed down with all these extremely high salary//benefits/bonuses given to executives and board of directors. I think these people can still live in their rich life style should they take a pay cut of 75%.

How about that?

I do not hear any mention of cutting salary/benefits/bonuses to reduce the burden that companies have to bear.

May be we should start a stock holder revolt to bring some sanity to the what we pay these executives and board of directors.