It seems that borrowing money from the US Government at 0% interest and then loaning it out at 6% is a good way to run a bank.
In a letter to employees Monday, Citi Chief Executive Vikram Pandit said the performance so far this year has been the bank's best since the third quarter of 2007 — the last time it recorded net income for a full period. Based on historical revenue and expense rates, Citi's projected earnings before taxes and one-time charges would be about $8.3 billion for the full quarter.
Maybe this will end some of the nationalization fears that the market has been having recently. Still those toxic assets are on the books and they are the real problem.
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