So Citibank is suddenly turning a profit? Someone explain to me

[Skidmore]

how this is so? I thought they were bankrupt and tanking.

[DainBramaged]

1. Raised their credit card interest rates, fees, laid of Domestic IT help

wrote off the bad debt. Trickery.

[Redbear]

2. Operating profit only

It doesn't include writedowns etc.

If they were making a real profit, they wouldn't be trading at $1.05 per share

[kickysnana]

3. Same accountants that reported during the Ivana Trump divorce n/t

[SoCalDem]

4. Creative writing classes ?

Not too long ago, people's 401-k statements looked pretty good too..but it was all fake..

[marketcrazy1]

7. I will believe it when i see it

or maybe not!!! more accounting tricks. cash flow only takes them so far. they suspended foreclosures until march 17th, so those write downs will come later. they can fudge the books all they want. it wont change the outcome. at the end of the day they are toast!!! edit: I wonder if they are still over counting DTA on the asset side??

[SoCalDem]

13. Commercial foreclosures are due to hit next year.. and a bunch of ARMs re-set then too

:scared:

[Roland99]

5. Looks like they've been dumping toxic assets? AIG's been getting full retail from the govt on theirs

http://www.marketwatch.com/news/story/Citi-rises-Pandit-plugs-profit/story.aspx?guid=%7BF10F31DA%2DD7A6%2D4CDB%2D9180%2DB13EBE115031%7D

Pandit also reassured investors that management believes Citigroup can earn enough taxable income in coming years to realize most of its deferred tax assists, currently valued at about $44 billion.

The deferred tax assets are benefits for which Citigroup has become eligible as a result of posting huge losses over the last several quarters. To the extent that it earns a certain amount of taxable income, the company will be able to avoid taxes in the future.

The deferred tax assets are important, because Citigroup counts them toward its tangible common equity -- an important measure of a company's financial health.

...

Citigroup also said that it has reduced the risky assets in securities and banking to $112 billion at the end of 2008 from $226 billion in the year-ago period.
Moreover, it said it has $30 billion in loan-loss reserves, or 4.3% of loans at the end of 2008.

[Vinnie From Indy]

6. Woooo Hoooo !!!!! Looks like it is BONUS TIME at Citibank!!!

Everyday is Christmas for the executives on Wall Street!

[snappyturtle]

9. Heard this morning that in fact Citi did hand out "bonuses" of late to those

scheduled to attend a big function that was canceled....it was a perk, I guess. So-o to make things better they handed out money in lieu of the trip because, after all, they have to hang on to the "talent" for fear it would leave and hire on to foreign banks on American soil! MSNBC,,MJ, questioned, questioned, whether this payment could be regarded as a bonus! These people do not live on the same planet I live on. eom

[snappyturtle]

10. Self-delete...dupe

[marmar]

8. Operating profit.......Doesn't include all the enormous bad debts they've got.

n/t

[NewJeffCT]

15. That's probably most of the reason

However, as I stated below, if they wrote off tens of billions in bad debts, it will eventually help the bottom line as well.

[ecstatic]

11. I wish I had bought in at 99 cents

Nothing major... just an amount I'd be willing to lose if need be. :(

[liberal N proud]

12. Yea! - THE RECESSION IS OVER!

:sarcasm:

[NewJeffCT]

14. If they had billions in writeoffs last year

they would have been able to release some reserves, and free up capital.

[fumsm]

16. Cramer and GEMSNBC ordered it this morning

[Skidmore]

17. All the snark is nice but it still doesn't address the question I asked.

Yesterday, Citigroup was a big black pit and my mortgage was to be swallowed in it if it doesn't receive untold billions to bail it out. Now today we hear it has turned a profit? I want to know why this about face within the space of 24 hours. Did they really need a bailout? If not, why were they lying? Are they lying now and do they still need bailed out? What the hell is going on? I would like to know that we, the people, are informed of where this money has gone, especially since the financial markets still have their greedy hand extended--palm up.

[Nickster]

18. The bottom line is that they are doctoring the info. This is a pure PR job. I show quite a tidy sum

in my checkbook before I start paying out my bills every couple of weeks. They aren't showing the entire story, the media doesn't know how to invesitgate, and all of a sudden, Citibank is saved!

This is simply smoke and mirrors and piss poor reporting.