Citigroup’s first quarter profit is down 32 percent. Reuters reports, “The third-largest U.S. bank generated profit in large part because it dipped into funds previously set aside to cover bad loans, releasing $3.37 billion of reserves.”
It’s also being reported that Bank of America had a 39 percent drop in its first quarter earnings.
I’m not an economist, and this stuff is way over my head, but aren’t these a couple of the “too big to fail” guys we had no choice but to bail out with public TARP funding not so very long ago?
And more bad news from Nathaniel Popper in the Los Angeles Times, regarding Standard and Poor’s.
Popper, reports S&P has lowered the U.S. credit rating to “negative. “The credit rating agency says there is at least a 33% chance it will downgrade the rating on the nation’s debt in the next two years.”-LA Times
This is all the more fascinating when you realize that to date, no one on Wall Street has gone to jail for wrecking the nation’s economy. Except for Bernie Madoff, who was operating as a free agent, without the cover of being too big to fail.
The following snippet is from a piece by Matt Taibbi in Rolling Stone.
“‘Nobody goes to jail.‘ This is the mantra of the financial-crisis era, one that saw virtually every major bank and financial company on Wall Street embroiled in obscene criminal scandals that impoverished millions and collectively destroyed hundreds of billions, in fact, trillions of dollars of the world’s wealth — and nobody went to jail. Nobody, that is, except Bernie Madoff, a flamboyant and pathological celebrity con artist, whose victims happened to be other rich and famous people.” -Rolling Stone