After a bumpy end to 2009, all six of the nation’s largest financial institutions are expected to report a profit for the first quarter. Even Citigroup (NYSE:C) and Bank of America (NYSE:BAC), long considered the laggards of the group, are both expected to report slim profits of less than a $1 billion each, after hemorrhaging a combined $13 billion last quarter as a result of paying back bailout funds to taxpayers. The latest earnings season, which begins in earnest next Wednesday when JPMorgan Chase (NYSE:JPM) delivers its results before the opening bell, would represent the first time in a long, long while that all of the nation’s top financial institutions have collectively recorded a profit. –CNN Money
Charles O. “Chuck” Prince and Robert Rubin, Citigroup (NYSE:C) former leaders, face a grilling by the Financial Crisis Inquiry Commission today on why they didn’t foresee the housing collapse and its record losses. Commission Vice Chairman Bill Thomas said in an interview yesterday he wants to hear whether Prince, ousted as chief executive officer in 2007, and Rubin, who served as interim chairman, accept any responsibility for Citigroup’s performance. The panel is holding a second day of hearings in Washington to probe the mortgage-market collapse and ensuing bank bailouts. Given the multimillion-dollar pay packages awarded to Citigroup executives, Thomas said he wants to know why they didn’t do a better job. Bankers told the panel yesterday they relied on statistical models that failed to predict the severity of the crisis. The resulting losses crippled New York-based Citigroup and triggered a $45 billion federal bailout. -Bloomberg
Bed Bath & Beyond (NASDAQ:BBBY) reported late Wednesday its fiscal fourth-quarter net income jumped 60% to $226 million, or 86 cents a share, as sales rose 16.7% to $2.4 billion. Results exceeded expectations and forecast was strong. In other news, Palm (NASDAQ:PALM) shares are down some 3% in premarket trading after soaring 20% Wednesday on rumors computer maker Lenovo might be making a bid for the struggling phone maker. –Daily Finance
The yield on Greek 10-year bonds rose to nearly 7.6% Thursday, a fresh record high, increasing chances that Greece may need a bailout as concerns about Greek banks and the nation’s solvency mount. Economists warned that new doubts over the country’s banks and government funding plans now threaten to create a vicious circle of bad news. "The fear factor is beginning to creep in. In fact, it’s galloping in," said Neil Mellor, a senior currencies analyst at Bank of New York Mellon in London. The euro, which Greece shares with 15 other nations, tumbled to nearly $1.3300 in midday trading. –The Wall Street Journal
Consumer credit dropped in February, falling by $11.5 billion. Economists had predicted only a $700 million decline. the drop was the 12th in 13 straight months. Americans practically closed their wallets. compared to their lavish spending habits of the past. This is an important shift, since consumer spending accounts for 70% of GDP. –Blogging Stocks
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