Posted by Karl Denninger in Banking System at 14:48Tuesday, December 15. 2009
Gee, you think this might have something to do with the equity and tarp exit right now nonsense?
Citibank card chargeoffs 10.29% .vs. 8.79% (all month-over-month) and $617 billion in "Citi Holdings" (worth god only knows what), a cutesy game of asset-shifting and sausage-hiding the bank set up after Pandit came to power.
Capital One 9.6% .vs. 9.04%
AXP falls to 7.6% (that's actual improvement; was 7.8% last month)
JP Morgan/Chase, 8.81% .vs. 8.02%.
Bank America, 13% .vs. 13.22% (is that percentage even believable?) but lates are up to 7.69% from 7.59%.
Discover, 8.98% .vs. 8.54%.
(All charge-off rates annualized, but lates are current percentage of loans and banks use different definitions - some 30 days, some 60, etc. Once a loan goes beyond 60 days it rarely cures.)
So much for "The Recession is over" and "labor is stabilizing and jobs are even improving a bit."
Like hell.
These TARP exits are almost certainly the banks getting (from the bagholders they sold the shares to - that would be YOU if you were dumb enough to buy any!) while the getting is good.
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