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Trouble is quietly brewing among the largest U.S. financial institution. Recent earnings statements have shown a dip in profits due loan losses, increased reserves in the oil and gas sectors, and declines in investment banking revenue and profits.
The tough week for banks continued Friday as Citigroup reported a year-over-year decline in net profits of 27 percent during the first quarter in the bank’s Q1 earnings statement released Friday, from 4 point 8 billion dollars down to 3 point 5 billion dollars. The sharp decline in profits for Citigroup in Q1 echoed a theme that has been reverberating throughout the week for the nation’s larger banks. JPMorgan Chase, Bank of America, Wells Fargo, and PNC Financial all reported that their net incomes had dropped over-the-year during the first quarter.
Freedom Mortgage Corp., is the latest company to resolve claims that it violated the False Claims Act by knowingly originating and underwriting single-family mortgage loans insured by the FHA that did not meet the mortgage insurer's requirements. The U.S. Justice Department announced that Freedom Mortgage will pay 113 million dollars resolve allegations that it violated the False Claims Act from 2006 to 2011.
