Citigroup became the latest bank to post better than expected results for its first quarter. The bank on Friday said net income of $1.6 billion, compared with a loss of $5.11 billion in the quarter a year ago. Citigroup’s problems are far from over, but it had its best quarter since late 2007.

The bank reported a loss to common shareholders of $966 million after massive loan losses and dividends to preferred stockholders. But before paying those dividends, the bank had net income of $1.6 billion.

Overall, Citigroup’s results were better than expected. The company reported a loss per share of 18 cents, which was narrower than the 34 cents analysts predicted. A year ago, Citigroup suffered a loss of more than $5 billion, or $1.03 a share.

Citigroup’s revenue doubled in the first quarter from a year ago to $24.8 billion thanks to strong trading activity. Its credit costs were high, though, at $10 billion, due to $7.3 billion in loan losses and a $2.7 billion increase in reserves for future loan losses.

Citigroup has been one of the weakest of the large U.S. banks, posting quarterly losses since the fourth quarter of 2007. But in March, CEO Vikram Pandit triggered a stock market rally after he said that January and February had been profitable for Citigroup.
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It was one of the first signals that the banking industry might not be as sick as many believed. Earlier that month, fears that banks would need to be nationalized sent stocks plunging to 12-year lows.

Citigroup’s better-than-expected results on Friday come after surprisingly solid earnings from JPMorgan Chase & Co., Goldman Sachs Group Inc., and Wells Fargo & Co. over the past several days.

Five banks have repaid millions of dollars they received from the government’s $700 billion financial bailout pot, the Obama administration said Thursday.

The Treasury Department, which oversees the bailout program, said the banks returned a total of $353 million.

The banks are: Iberiabank Corp. of Lafayette, La.; Bank of Marin Bancorp of Novato, Calif.; Old National Bancorp. of Evansville, Ind.; Signature Bank of New York; and Centra Financial Holdings Inc. of Morgantown, W.Va.

They were the first banks to repay the government, wanting to escape the increasingly tough restrictions placed on participants in the rescue program.

In addition to the $353 million, the banks paid the government a total of $5.4 million in dividends, Treasury Department spokesman Andrew Williams said.

The program was enacted in early October after the financial crisis — the worst since the 1930s — intensified. The goal of the program was to inject capital in banks so that they would be in a better position to boost lending, a crucial ingredient to any economic recovery. Nearly $200 billion has been injected into banks thus far.

The five banks have 15 days to buy back warrants from the government. If they don’t, the government will sell them to private investors, Williams said.

Iranian banks illegally shifted billions of dollars through American financial institutions in recent years, and authorities suspect some of the money may have been used to finance Iran’s nuclear and missile programs.

Some of the world’s top banks helped Iran get around international sanctions even as the rogue nation was steering its blood money into the hands of terror groups, prosecutors charged Friday.

Ten international banks including British-based Lloyds laundered “billions of dollars” for Iran through New York banks, Manhattan District Attorney Robert Morgenthau announced Friday. The scheme helped Iran turn its dirty money into greenbacks, which it could then use to buy goods prohibited by international sanctions.

Some of the money went to fund terrorist groups like Hamas and Hezbollah, and to help Iran get materials, including tungsten, for long-range missiles, sources said.

“This is one of the biggest investigations we’ve ever conducted.”

Lloyds admitted it laundered $300 million and agreed to pay a $350 million fine and open its books to investigators. If records show that the bank knew it was helping Iran break international law or foster terrorism, Lloyds could face criminal prosecution, authorities said.

None of the other nine banks was identified because they are working out similar agreements with Morgenthau’s investigators. The CIA will also review the bank records.
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In one internal document, Lloyds said transactions from the London branches of Iranian banks should be processed in “the normal way,” which meant removing information that would tie them to Iran, according to the agreement. Lloyds eventually dedicated specific employees to scrubbing the Iranian transactions, the agreement said.

Over 12 years, “about $350 million was allowed to move through the U.S. financial system that at a minimum should have been scrutinized,” Matthew Friedrich, acting assistant attorney general of the Justice Department’s Criminal Division, told reporters yesterday in Washington.

Nine Months

Over the next nine months, Lloyds has agreed to provide financial information on the transactions, Friedrich said. The vast majority of information already has been turned over, the Justice Department said.

“We can look at where did this money go, where was it sent from and we can do the scrutiny that should have been performed in the first place,” he said.

One of the main questions U.S. authorities will focus on is whether any of the money funded terrorism, Friedrich said.

“The consensus view is that Iran is one of if not the most active state sponsors of terrorist groups,” Weber said. “There’s a lot of people [in the U.S. government] thinking about ways to make it much harder for Iran to move money around.”

The laundering began more than 13 years ago and ran through 2007, according to the DA’s probe. Lloyds also washed money for Sudanese banks, even though financial dealings with both governments are prohibited by international sanctions.

In the scheme, first disclosed last March by The News, Iran would deposit huge sums in the international banks, which then converted it into dollars and parceled it out under altered names and routing codes. The money was moved through a series of smaller banks and ultimately drawn on for banned purposes.

“You couldn’t tell where the money was coming from or where it was going to.”

Because the origin of the funds was disguised, the money slipped through computerized filters at New York banks designed to stop any transfers to and from Iranian interests, Morgenthau said.

Much of the money went to Iranian banks, which typically send money to terror groups in the West Bank, Gaza, Lebanon and Afghanistan through front organizations and so-called charities, according to the Treasury Department’s Office of Foreign Assets Control.

U.S. laws bar the transfer of funds from Iran and other sanctioned countries without authorization by the U.S. Treasury Department. Assistant District Attorney Adam Kaufman said the bank’s conduct didn’t necessarily violate laws in the U.K., where Lloyds is based.

Last month, federal prosecutors in the U.S. sued to gain control of a 36-story Manhattan office tower they claim belongs to the Iranian government’s Bank Melli. Farhsid Jahedi, President of the Alavi Foundation that owns a 60 percent stake in the tower, also was arrested for destroying documents.

Picture Courtsey – Halifax

The Rescue Plan. Is my money safe at the Bank?

Well to be honest, I would like to say yes. If you asked me the same question some months months ago, I would have undoubtedly said yes. Now however I actually have a sliver of doubt. It’s true that the Federal Deposit Insurance Corporation (FDIC) pledges to insure your money.

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This insurance comes fortunately or unfortunately comes from the US government, and the government itself is largely in debt. As we’ve seen with the $700 billion dollar bailout, the government is willing to take on more debt.

The problem is what happens if a lot of the bigger banks start having still more problems. How many billions or trillions or extra money does the government have to give people?

Banking is more sensitive business than the other. The online banking makes it more sensitive because all the information and financial transactions take place online.

Reports of rampant Internet fraud and identity theft have led many to conclude that the convenience of online banking and shopping isn’t worth the risk.

That would be the wrong conclusion. The majority of ID theft occurs outside cyberspace. Banks, credit-card issuers and online retailers are rolling out more effective security features.

And there’s plenty you can do on your own to build a Star Wars-worthy force field around your personal data.

1. Once you open an online banking account either personal or current business account than you must get the details by mail like your account number, customer identification number, online access username and password as well as ATM card PIN number etc. You can get all the details in sealed enveloped by post so you must keep all the details in the safer place. Please do not disclose to anybody

2. Online banking business is based on SSL security and Java Script. All transaction you make or all information you feed online will convert into an encryption so there are nil chances to get an access on the customer information.

3. Use credit, not debit. The pay-as-you-go ethos of debit cards is good financially, but for security purposes, credit cards have the edge. They act as a buffer: If your card is misused, you won’t be out actual money before you resolve the situation.

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Credit-card issuers also have greater legal obligations when it comes to how much they can hold you responsible for and how quickly you have to report fraud before you’re on the hook.

4. Another most important consideration is do not disclose a your login details and password. It is most important to change your password every time. Please also make sure that un-tick login details and password remember request from the computer. If you are not able to perform such task on other PC than there may be a chances for someone to access your account.

5. You must have to monitor your online banking account carefully. If you find any unknown transaction to other account than you can immediately call to the customer care department for further scrutiny.

6. It is most important for you to put the login details at a safer place.

The online banking is safe till you cant disclosed or make sure to share your personal details to other or through e-mail or online. Once customer get smarter to manage online account, it makes all online banking transaction safer.

After consumers complete the loan application and have chosen a loan type, the lender provides several documents to borrowers that disclose important aspects of the loan.

When it comes to borrowing money, it is common to focus on the interest rate. It makes sense, because the interest rate plays the largest role in determining how much the loan will actually cost, plus the interest rate is the easiest way for lenders to market their products.

While interest rates are certainly important, every loan has four common factors that will ultimately determine whether or not the loan is a good deal.

- Most loans come with some type of fee. This fee is usually used to pay for processing or originating the loan, and the fee isn’t always transparent. Sometimes the fees can be worked into the overall cost of the loan, or they may be completely separate. You will probably have to ask in order to find out what the fees are.

- Again, interest rates are used to advertise most loans, and obviously, the lower the rate, the better. One thing you do have to consider is whether the rate is fixed or adjustable, and if there are any special conditions that need to be met in order to qualify for the advertised rate.

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- A longer term on a loan means lower monthly payments, but this isn’t always a good thing. The longer the loan, the more interest you’ll pay. This is where interest rate can come into play again and lenders will offer a very attractive rate, but require the term of the loan to be quite long. This can actually make the loan more costly than a shorter term loan with a higher rate. Make sure you do the math before signing any papers.

- Most people simply ignore the fine print, but this can be a costly mistake. Buried deep inside the terms and conditions you may find things like prepayment penalties, late fees, rate adjustments, refinancing restrictions, and much more. What could be an otherwise very attractive loan, may be so cluttered with potential fees and restrictions that you’re almost trapped into the loan. Take a few minutes to read and understand all of the fine print.

In your lifetime, you will use plenty of banking products that were previously not available to the ordinary person. Whether you are starting out with a small company or whether you run an established business it is important to ensure that you have the right business account in order to aid the smooth running of your company’s finances.

You can enjoy a choice of popular Business Banking accounts these days from a range of banks and financial institutions, so finding the right business account to suit your needs and those of your business should not prove too much of a problem. Business accounts offer increased convenience and financial support for commercial businesses, and you can enjoy a range of benefits when you open a business account.

Due to laziness alone, we often do our Business Banking with the same people our personal bank account is held with. If you shop around, you wont get much of a better deal financially (rates and services are generally almost identical) but you will find banks who offer better service, better personnel and advice. Depending on the size of your business a large part of Business Funding products are tailored to suit your business needs.

Banks are confident that through their Free Business Banking schemes you can save your business a lot of money. With a simple online calculator you can see how much you can actually save.

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Business banking is very different to personal banking. To begin with, your choice of banks is different and much more limited than with your personal bank account. You wont get the benefit of the new rash of internet banks- but the high street banks are becoming more competitive for your business custom. This is because business banking is where they usually make some money. Business banking solutions can be tailor made to suit your needs depending on the size and nature of your business.

The easiest way to compare different business accounts available in the is to harness the power of the Internet, where you will find a range of business accounts to look at. You can quickly and conveniently compare the benefits offered with each account, as well as comparing other areas of the account such as interest rates, fees and charges, penalties, credit facilities, services, etc.

By running comparisons online you can determine which business account you wish to apply for, and you can also apply to open one of these business accounts online, saving yourself a great deal of time and hassle.

Are you short for month money at the end of each month? Do you have 5-10 credit cards, all maxed out to the limit? Do you forget to pay your bills on time? If you have answered, “Yes,” to any of these questions, don’t feel bad and don’t worry. I have some tips that can help you improve your financial picture: Create a Bill-Paying System

The first thing you’ll need to do is to go out and pick up some colored hanging folders. If you don’t have a file cabinet, get a file box that you can find in any stationery store or discount department store. They’re very inexpensive. Then, make a folder for each expense. Use one color for your bank statements, another for your utility bills, and another for credit cards. Keep the system pretty simple or complexity could let procrastination) take over.

Each day when your mail arrives, separate it immediately into what you don’t need and want to throw away and your bills and other things that need attention right away. Do the things that are needed and either pay the bill right away or put them in a central place where you can retrieve them when the money is available for paying the bills. This could be the front of a desk drawer, for instance, or even a basket on top of your desk. Just be sure that nothing goes into that basket besides your bills.

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Online banking is a great way to streamline the bill paying process. Bank security is top notch, so the question of you having a problem online is really out of the equation. The chances are very slim. So, what you do is you take each bill that you receive and you put the information needed into the online banking account. You don’t have to do this all at once. Wait until your next bill comes in and do it one or two at a time. That way, it seems less daunting, and remember, you only have to do it once. After all the information has been entered, paying a bill becomes as simple as clicking a button, a mouse button, that is.

When you’re finished paying your bills, be it online or off, put the paid bills with the date of payment written on the front, into one of the colored file folders. That way, when tax time comes around, all your financial records will be at your fingertips.

Don’t carry around huge wads of cash or a debit card linked to your bank account, either. If you prefer the convenience of plastic, open a separate bank account and put a monthly “allowance” into it for yourself. When the money’s gone, you’ll just have to wait until next month to get more. This should help you to budget your spending and hold back on those impulse purchases a little.

And if you want to buy something, decide whether you need it or just simply want it. If you think you need it, just walk away and take 26 hours or longer to consider the purchase. Once it’s out of your site, you may find that it’s really a want, disguising itself as a need.

Before you pay any bill, any expense for the month, you should always be paying yourself. Ten percent of your income, every time you get money or a paycheck, should go into a savings account. If you don’t have a savings account, get one and never, ever use it except for depositing. Your savings account is for huge expenses, like buying a house, repairing your car, or retirement.

Put at least one of these tips into practice and see how well it works for you. I guarantee that you’ll be back to try another.

An identity thief takes your personal information and uses it without your knowledge. The thief may run up debts or even commit crimes in your name. Identity theft is serious. While some identity theft victims can resolve their problems quickly, others spend hundreds of dollars and many days repairing damage to their good name and credit record.

As the name suggests, it is the theft of the personal information of another. The theft would be incomplete unless the information was used for some nefarious process, and it is in many different ways. Keeping your personal information from falling into the wrong hands will help you from becoming another identity theft victim.

The most common form of identity theft is not the stealing of credit card numbers. Instead, the devious individual is aiming for your social security number. Why? That number is the basis of many different financial transactions.

With a social security number, an identity thief can take many financial steps. They can open multiple credit card accounts. They even apply for a loan once they establish a second address.

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If you social security number is stolen, you may be shocked to learn where it turns up. Given the attitude towards illegal immigrants these days, many are trying to procure such numbers and identity thieves are now selling them to them.

The sale of social security numbers to people who need them to hold a job causes another massive problem for the victim.

Then there is the classic bank account scheme. The first identity thieves simply took social security numbers, opened bank accounts with them and wrote bad checks. It still happens today and banks will come looking for you eventually.

The horrific thing about identity theft is it occurs without the victim knowing it. The identity thief always uses an alternative address, so you have no way of discovering what is going on until it is much too late. Unfortunately, many consumers learn that their identity has been stolen after some damage has been done.

Sooner or later, you will figure out that you have been a victim of identity theft. It may be when collectors call or when your ATM card doesn’t work or when a credit card charge is rejected. Whatever the occasion, it will not be pleasant.

Some people discount identity theft because it is not a crime causing physical pain. Obviously, they have never had it happen to them. It can take months and even years to resolve it, so take steps to prevent it.

Should you ever become a victim, contact your banks and credit card issuers, the three major credit bureaus and file a police report.

Imagine, you need details of your last few transactions, but are stuck in a traffic jam on way to the bank. How you wish you could get the details on your mobile phone!

Well, you really can ‘bank’ on your mobile phone today, provided you have opted for the service from your bank. Just SMS (short message service) your bank’s customer service number and get the details in a few seconds – that’s how simple it can get, if you have a mobile phone, a personal identification number and a phone banking number from your bank. It’s the same with paying utility bills, transferring money to someone, whether in your home country or abroad, and making a purchase at a retail store.

Most banks already allow customers to make basic transactions over the phone. Banking might be getting a little easier than that. One of the largest banks, recently announced plans for a mobile banking service. To use the service, mobile users download an application to their cell phones, just like you would for a game or song, and use their cell phones to check balances, transfer funds, pay bills, or even find an ATM.

Having the ability to bank using a cell phone is an innovative idea, but will it make it easier for consumers to pay their bills? Perhaps. If your credit card payment is due today, this mobile banking service might allow you to pay it the second you remember it, rather than risk a late payment due to forgetfulness.

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So far, the systems are free for banking customers if they have a phone with data capability and a large enough screen to display a few lines of information. There is a charge though for the various services for data plan on phones, or customers can pay a one-time use fee each session, typically a few cents.

To address security worries of customers, the company working with banks to produce the system, does not send any personal information through wireless networks. It does not send account numbers, credit card numbers or Social Security numbers.

If a phone is lost, customers can call their bank and customer service staff can “kill” the application in about five seconds.

The first such systems have ironed out the wireless technology to the point that sending money or looking up account balances takes just a few button clicks and is roughly as easy as scrolling through a phone’s address book to make a call.

The cell phone is now a ubiquitous device, says a senior banking analyst and consumers are much more familiar with using self-service applications. Plus, you now can do more through your cell phone than what mobile banking traditionally has allowed, such as receiving text message alerts from your bank or locating the nearest branch or ATM.

You can check account balances before say, withdrawing cash at the ATM. You also can see if a transaction has cleared, pay bills on the go and transfer money between accounts.

For all that, however, mobile banking is currently seen as just one of the value added services provided by banks. However, it is just a matter of time before it becomes the preferred mode of conducting banking or financial transactions.