Banks Still Going Bust?

Some creative accounting, a Congress reluctant to offer any more help and the "stress test results" may squash a big comeback by the banking industry. The stock market is bouncing up and down as investors seem jittery about the banking industry, despite several major banks reporting first-quarter profits. Wells Fargo, Inc., Citigroup and Bank of America all reported better than expected earnings for the first part of the year.

Those booming bottom lines from banks are being questioned though. The New York Times financial columnist Paul Krugman warned Americans to stay skeptical as banks maneuvered their numbers. "The biggest positive news in recent days has come from banks, which have been announcing surprisingly good earnings. But some of those earnings reports look a little...funny." For example, Krugman noted that Goldman Sachs changed its definition of "quarter."

Treasury Secretary Timothy Geithner revealed recently that of the $700 billion in government bailout money dedicated to rescuing the U.S. financial markets, only $109.6 billion remains. While the Treasury Department said they expect the fund to receive about $25 billion in the next year as companies repay their loans, Congress seemed a little confused on the return taxpayers were getting on this massive investment. The numbers breakdown as follows, according to the Associated Press:

$355.4 billion - committed under the Bush administration to help bolster AIG, Citigroup, Bank of America, GM, and Chrysler among other companies.

$30 billion - additional funds given to AIG under the Obama administration.

$5 billion - additional funds to automakers under the Obama administration.

$200 billion - disbursed to more than $500 banks.

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