Friday, April 17, 2009

Citi Announces a Profit

by Bill McBride on 4/17/2009 08:32:00 AM

From Bloomberg: Citigroup Profit Exceeds Estimates on Trading, Accounting Rule

Citigroup Inc. [reported] a $1.6 billion profit on trading gains and an accounting benefit for companies in distress.
...
While the bank cut compensation costs and took fewer writedowns, it couldn’t halt rising delinquencies on home and credit-card loans. Citigroup benefited from higher fixed-income trading revenue ...

Citigroup posted a $2.5 billion gain because of an accounting change adopted in 2007. Under the rule, companies are allowed to record any declines in the market value of their own debt as an unrealized gain.
So when do they pay back the TARP money?