Apr 102009
From Yahoo news, I saw an article titled, “Wells Fargo projects record $3 billion 1Q profit.”
I guess that’s good news. Maybe. The news article talks about how their stock price surged and the overall market was up 159 points.
But then in the 4th paragraph, you read:
San Francisco-based Wells Fargo, which has received $25 billion in funds as part of the government’s bank bailout plan, anticipates earnings after preferred dividends of about 55 cents per share. Revenue for the period ended March 31 is expected to climb 16 percent to $20 billion.
So let’s see, what if we take away the government bail out money. Let me see if I can do this math,
$3 billion – $25 billion = -$22 billion
So without the bailout money, they would have recorded a $22Billion dollar loss?
That would have been a huge loss, back in the days before Obama’s proposed 10 year 9.3 Trillion dollar deficit.