Tuesday, October 18, 2011

While unemployment tops 9%....

Citigroup earnings rise 74 percent, to $3.8 billion

PALLAVI GOGOI, Associated Press
October 17, 2011

NEW YORK (AP) — Citigroup Inc.'s earnings rose 74 percent in the third quarter. The profit report came as the Occupy Wall Street movement entered its second month and spread across the country, targeting large financial institutions like Citi.

Monday's results reflected Citigroup's seventh straight quarter of income growth. Citigroup was one of the biggest recipients of taxpayer support during the financial crisis. It received $45 billion in bailouts funds and was partly owned by the government until December 2010.

Bank Of America Sees $6.2 Billion Profit

Jillian Berman, The Huffington Post 
October 18, 2011

Bank of America earned billions of dollars in profits last quarter, even as banking officials expressed concern recently about the effects of new regulations on their bottom line.
The bank reported third quarter gains of $6.2 billion, compared to a $7.3 billion loss during the same quarter last year. The increase in profits comes after Bank of America roiled customers by announcing that it will start charging customers $5 per month to use their debit cards for purchases in 2012. Shortly after the bank announced the fee, Bank of America CEO Brian Moynihan defended it, saying that the bank "has a right to make a profit."
Moynihan and other banking officials have said that they need to start charging fees on debit cards and checking accounts for once-free services to recoup the revenue they expect to lose as a result of financial reform regulations -- including a cap on the debit card swipe fee banks charge merchants -- passed as part of the Dodd-Frank act.
Bank of America isn't the only bank adding new fees. Wells Fargo announced in August that it would test a $3 debit card fee this fall, while Citibank said earlier this month that it would start charging certain customers a $20 fee for low account balances.