Financials Reporting: Bank of America, General Electric
This is a classic good news/bad news story as good news from the yield curve is making money for the traders, but bad news from the housing is still putting a 2+Billion dollar hole in Earnings. The sheer amount that the Fed is allowing banks to capture through the yield curve is mind boggling. That we are still losing 2 Billion a quarter 2 1/2 years into the housing debacle means big trouble for other financials with large housing exposure. Look for "ginormous" taxpayer losses and Fannie, Freddie and GMAC. said Friday its first-quarter earnings rose 0.7 percent to $2.83 billion as strong trading revenue helped the bank offset continuing losses on consumer loans.
No love for the homes as the bank reported a $2.1 billion loss in its home mortgage business, but said its other consumer loan businesses were showing signs of healing.
General Electric Co. said Friday that its first-quarter earnings fell almost a third, but the industrial and financial bellwether said it saw signs of improvement in its own results and the broader economy.Their earnings slipped 32% but still beat Wall Street forecasts. Revenue was below forecasts.
The conglomerate's first quarter performance was a further reminder of the major challenges it faces as tries to return to profit growth. Its GE Capital lending unit posted a profit but losses remained high in areas like commercial real estate. GE's industrial units, which it is relying on to lead it out of the recession, also posted lower sales.