Citigroup reported 4th quarter profits, with an income of $1.3 billion. However, their earnings were below analyst expectations, sending the stock down 6.34% to $4.80 a share. Compared to last years 4th quarter loss of $7.6 billion, Citi has made an amazing turnaround, with revenue for this quarter at $18.4 billion vs $5.4 billion a year ago. For the year, out of $86.6 billion in revenue Citi earned $10.6 billion. This is Citi’s first year of full profits since the financial crisis of 2007. Expectations are high for Citi to continue strong growth.

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Check out this info chart from Visual Economics for suggested routes for investing.

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The U.S. Government is estimating to record a $7.7 billion profit according to the U.S. Treasury.

At the peak of the credit crisis in 2008 the government received 7.7 billion shares of Citigroup in return for $25 billion, and was repaid the $20 billion loan last December (TARP).

Late last year Citigroup announced millions of new shares to sell and at that time the government considered selling its stake as well. However, the treasury paid $3.25 a share and with the price at $3.15 a share the government would have lost $158.7 million so they backed out and decided to sell their shares systematically based on market conditions.

If the government is able to sell their stake at $4.25 a share they will earn $7.7 billion profit. Additionally, Morgan Stanley will handle the sale of those shares.

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Here is an interesting graphic based on data from Linkedin, it shows where collapsed bank employees went during the economic crisis.

From Linkedin:
One hypothesis is that many of the employees left the financial industry. According to the LinkedIn data set, that just isn’t true. There are a handful of people that did transition to other industries and start new careers, but most stayed in the financial space. To be specific, other than two acquiring companies (Bank of America acquired Merrill Lynch and Nomura acquired Lehman Brothers’ franchise in the Asia Pacific region), Barclays was by far the biggest beneficiary, scooping up 10% of the laid off talent, followed by Credit Suisse at 1.5% and Citigroup at 1.1 %.

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18 of the worlds largest banks by market value and compensation distribution is presented by Reuters. This chart shows the massive differences in pay among CEO’s in America compared to CEO’s overseas. Its no surprise that American CEO’s are heavily paid.

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Here is a compiled list showing the salaries and bonuses for top banking CEO’s in 2009.

• JP Morgan: Jamie Dimon comes out on top with a $1MM salary and $17MM bonus (5 years restricted stock)
• Goldman Sachs: Lloyd Blankfein makes a $9MM bonus (restricted stock)
• Morgan Stanely: James Gorman makes a $9MM bonus and $800K salary
• Bank of America: Brian Moynihan makes a $950K salary and 0 bonus
• Citigroup: Vikram Pandit will take $1 dollar at his own request
• Jefferies Group: Richard Handler makes $12MM in bonus

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The FDIC seized 5 more banks, raising the totaled number of failed U.S banks in 2010 to 15. FDIC Chairman Sheila Bair has said in the current banking crisis, failures will peak in 2010.

According to the FDIC bank failures from 2009 to 2013 is expected to cost $100 billion. Small(regional) banks are failing due to the loan losses from the credit boom. Many losses are result of the collapsed commercial real estate projects.

Brief Rundown;

Bank                                                                                               Assets                              Deposits

American Marine Bank (Washington)                                 $373.2 million              $308.5 million
First Regional Bank (California)                                           $2.18 billion                   $1.87 billion
Community Bank and Trust (Georgia)                                  $1.21 billion                   $1.11 billion
First National Bank of Georgia (Georgia)                            $832.6 million              $757.9 million
Florida Community Bank (Florida)                                        $875.5 million              $795.5 million
Marshall Bank, National Association  (Minnesota)         $59.9 million                 $54.7 million

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Heres a clip from John Stewart! A little lunch time humor!

The Daily Show With Jon Stewart
Mon – Thurs 11p / 10c

Obama Takes On Bankers

www.thedailyshow.com

Daily Show
Full Episodes
Political Humor
Health Care Crisis

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The FDIC seized 5 more banks, raising the totaled number of failed U.S banks in 2010 to 9. FDIC Chairman Sheila Bair has said in the current banking crisis, failures will peak in 2010.

According to the FDIC bank failures from 2009 to 2013 is expected to cost $100 billion. Small(regional) banks are failing due to the loan losses from the credit boom. Many losses are result of the collapsed commercial real estate projects.

Brief Rundown;

Bank                                                                             Assets                              Deposits

Columbia River Bank (Oregon)                          $1.1 billion                     $1 billion
Charter Bank (New Mexico)                                $1.2 billion                    $851.5 million
Evergreen Bank (Washington)                           $488.5 million             $439.4 million
Bank of Leeton (Missouri)                                   $20.1 million                 $20.4 million
Premier American Bank (Florida)                     $350.9 million               $326.3 million

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Below is the chart of the day via Visual Economics:

It amazing to see the rapid rise in consumer debt. As mainstream attention remains on the housing crisis and loan defaults, its going to be very hard for the market to continue ignoring the current credit crisis.

Click to enlarge

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