Citi, Bank of America Join Profit Parade

Second Quarter Earnings of $3B and $2.42B, Respectively, Outpace Forecasts

(AP)  Bank of America has joined other big banks this week in reporting a hefty second-quarter profit.

Also, Citigroup earned $3 billion in the second quarter, a much stronger result than losses forecast by analysts.

Bank of America's profit of $2.42 billion, or 33 cents per share, beat Wall Street forecasts. Analysts had expected the bank to earn 28 cents per share.

The company, like Goldman Sachs Group Inc. and JPMorgan Chase & Co., said it had a handsome profit from its trading business. The company acquired Merrill Lynch & Co. this year.

But, like JPMorgan Chase, it did report continuing losses from failed loans. Bank of America said recorded a $13.4 billion provision for loan losses during the second quarter.

Bank of America said its mortgage revenue rose following its acquisition of lender Countrywide Financial Corp.

[sunnyinnj]

I have been a BOA customer for nearly 10 years. I was late with a payment by one day last month as my due date was a sunday and the payment was posted on monday. They tripled my interest rate for 9% to 27%. I contacted them and they gave me a phone number for a debt consolidation company. I don't need debt consolidation, I need the interest rate to be where I can afford to make the payments. Guess bankruptcy is the next step. What else can I do??

[MsNorm]

I received a letter from Citi on Friday indicating my interest rate was going to increase to 21.99%. I did not default in any way. I do have the option to opt out if I choose not to pay that increase. I have been paying the minimum for the last 8 months because my husbands business is grossing about 10% to 15% what it was 2 years ago (in the new construction industry). We have remained current on our bills though.

Anyone else hear of this recent increase in interest rate? It's going to make Citi turn a profit that's for sure.

[dsimm3]

I feel your pain, I too just received a letter from Citi bank. I have NOT been late but have faced similar challenges of our income dropping about 60%. I have been paying the minimum on the card and we had a 7.99% Interest rate and they are now saying it will go to 29.99%. They must want to lose all their customers. I can even see raising it from the 7.99% but to almost quadruple it!!!! We have had this card for about 8 years or so. A profit is one thing but this is ridiculous.

[mcv57]

Government U.S. Officials and Corporation are raping the financial world before the big crash - the rich (politicians and corporate execs.) are running with whatever gold that is left. This is outright treason!!!

[mcv57]

CBS, please don't join the ban of thieves and liars - Corporate America. The public relies on your straight unbias truth. If cannot do that, even you shall reap what you sow, CBS.

By Joseph A. Giannone
NEW YORK (Reuters) - Citigroup on Friday said loan losses surged again in the second quarter, yet gains from selling most of its Smith Barney brokerage helped the company report the highest profit among big U.S. banks.

Citigroup, twice deemed too big to fail by the U.S. government during the past year, recorded an $11.1 billion (6.8 billion pounds) pretax gain from selling Smith Barney into a joint venture with Morgan Stanley's brokerage unit. Citi received a 49 percent stake in the venture and cash.

[patronejohn]

Boy! Am I glad I live in the United Snakes of America!

[zonkzilla]

Profits are up because after getting the free money the banks jacked up interest rates, foreclosed on homes, increased fees, and did everything possible to steal more money from people in the US.
Those bailouts are the biggest scandal in the history of the US.

[frogleg2]

This trumpet blowing needs to be silenced. Clearly this is not a sign of recovery but shows the huge corporations facility to sidestep the pitfalls of the present economy by using the taxpayers money. Of course they can show a profit since one must trade somewhere and they have eliminated a huge slice of the competition. The present economic turndown has resulted in a more monopolistic move by the private sector with the full support of the Feds using taxpayers money. The so called "trickle down effect" does not apply here unless you include the huge bonuses that banks and financial institutions pay out despite owing the taxpayers money. I view the current status of the economy as chaos with no real meaty solution. This chaos has allowed some of the dinosaurs who hold our money to make other dinosaurs extinct. Give witness to a new kind of "global racism" where the middle class is consumed for fuel by the remaining dinosaurs and we end up with two classes. The new racism is based on the principle that the people who have the money become the ruling class and the rest of us smucks become a slave to the system. This insidious form of racism does not look at the color of your skin but rather the balance of your assets and investment power. There is now a sharp line being drawn between the so called "haves" and "have nots" and majority of the people or "have nots". The middle class has virtually disappeared. Unfortunately this has existed in many countries but now it has gone global pushing even the highest U.S. wage earners into oblivion. Maybe this is a simplistic view but look at the history and truth of it. The United states is fast becoming a so called "developing country" and this is a step back for the majority of the people.

[stuart2020]

Socialism, communist, treasonous, Muslim, Kenyan. When are you neo-nuts getting new words from Rush and Beck to spew on the boards?

What is it with you drama queens and everything is treasonous? Do you guys actually know the meaning of the word????

[stuart2020]

We gave Bush over a trillion in surplus and look what we ended up with! You cons will make a profit huh? You guys could'nt make your beds in the morning.

[presjfk]

The banks showed a profit after giant bailouts from the government, bailouts which were supposed to be used to help homeowners and extend credit in all areas but didn't. In fact the banks reduced the credit available and increased their fees and rates to consumers.

I would call it treason.

[mainerose]

How wonderful! They made all that money by raising credit card interest rates. Since they are now so profitable, I expect I'll get a letter from them telling me they will now lower my rates to previous levels, right? NOT!!!

[imprisoncheney]

And why not???

When you can charge over 23 quadrillion dollars for one pack of smokes . . . like the guy in NH who swiped his Bank of America Visa card to pay for them was charged last week . . .

Plus, a $15 over-draft fee, too!

And, it only(!) took him over 2 hours on the phone . . . before the "generous" banks agreed to remove the charge -- and the over-draft fee (awwwwwww, how sweeet).

Then, BoA and Visa went on to blame the other for the mistake.

Sounds like the real problem's on WS -- not DC . . . duhhhhhhhhh.

[riddelup]

I am currently unemployed and as a result have a budget with a severe deficit. If the government would loan me a few million with no interest and no specific repayment requirement, I am sure I could loan that money out at a fair interest rate and then repay the government with alacrity.

[Benton09]

Now be sure and raise the interest rates on loans and credit cards so you can make more money. Would you like some more U. S. taxpayer dollars? No problem, how's a few more billion? After all, you're just too big to fail and those low life working taxpayers don't need that money anyway. Let's go have us a big corporate lunch and guess who'll pay for that???? Ha! Ha!