Did accounting changes just before the issuance of the strongly positive 1st quarter profit reports have an effect?
After Year of Heavy Losses, Citigroup Finds a Profit [NY Times]
Citigroup, the battered banking giant, eked out a first-quarter net profit on Friday after more than a year of staggering losses and three bailouts from Washington, but used an accounting adjustment to do it.
The New York-based bank reported first-quarter net income of $1.6 billion, after a loss of $5.11 billion in the period a year earlier. <
> The results were also helped by an accounting adjustment that allowed the bank to post a one-off gain of $2.5 billion on its derivative positions.
So, check my math here, a $1.6B profit minus the one-off gain of $2.5B equals a -$0.9B shortfall, a $900,000 loss, yes?
The Middle Class Must Not Be Forced to Bail Out Wall Street Greed
by Senator Bernie Sanders
For years, as a member of the House Banking Committee and now as a member of the Senate Budget Committee, I have heard the Bush administration tell us how “robust” our economy was and how strong the “fundamentals” were. That was until a few days ago. Now, we are being told that if Congress does not act immediately and approve the $700 billion Wall Street bailout proposal these “free marketers” have just written up, there will be an unprecedented economic meltdown in the United States and an unraveling of the global economy. [more]