.....US Big Banks
.....US Big Credit Card Corps
.....US Big Health Insurance Corps
.....US Big Insurance Corps
.....US Big Security Broker/Investment Advice Corps
.....US Big Financial Data Services Corps
In this post, I am addressing all of the remaining US Big Financial Corps, which file with the SEC, and with Pretax Earnings or Pretax Losses of more than $200 mil in any of the most recent three years.
The US Government-sponsored Enterprises Fannie Mae and Freddie Mac, have had their massive losses substantially reduced under the Obama Administration.
Fannie Mae's Pretax Losses were:
2008.....$44.6 bil
2009.....$73.0 bil
2010.....$14.1 bil
2011.....$16.9 bil
And Freddie Mac's Pretax Losses were:
2008.....$44.6 bil
2009.....$22.4 bil
2010.....$14.9 bil
2011.......$5.7 bil
Included in the above losses were just massive amounts of both Loan Loss Provisions and Derivative Losses.
While clearly there has been substantial progress in reducing these massive losses, much more needs to be done.
The Obama Administration has made wise recommendations to the independent Federal Housing Finance Agency, which oversees both Fannie and Freddie, to both bolster further the still very weak financial position of Fannie and Freddie, and to even more importantly, also improve the financial situation of US homeowners, which has been a massive drag on the US economy.
The head of the Federal Housing Finance Agency, Edward DeMarco, so far seems to be stubbornly rejecting these wise Obama Administration recommendations. I think if DeMarco continues to refuse to adopt these recommendations, he should be replaced by someone who is more open minded. US taxpayers, who are absorbing these massive losses of both Fannie and Freddie, will demand it.
The only thing preventing DeMarco's replacement are the US Congressional Republicans. DeMarco was appointed by former President Bush in 2008.
The 12 US Big Diversified Financial Services Corps had their 2009 Total Pretax Loss of $20.5 bil dramatically reverse to a Total Pretax Income of $2.5 bil in 2011.
And the 7 US Rental Corps had their Total Pretax Income in 2011 up an amazing 81% over 2010, and by an even more amazing 337% over 2009.
In deriving Pretax Income, I start with Pretax Income under Generally Accepted Accounting Principles (GAAP), and then exclude several clearly unusual very large items relative to Pretax Income, such as Gains on Acquisitions.
Clearly, the Obama Administration, with its wise initiatives, and coupled with very helpful assistance from Ben Bernanke at the US Fed, has created a US economic environment which has permitted these Other Financial Corps to substantially improve their very weak financial status at the end of the Bush/Cheney Presidency.
Below here is the Pretax Income (PTI) or Pretax Loss of these 25 US Big Other Financial Corps for each of the most recent three years.
| Obama | |||||
| Bump | |||||
| PTI | PTI | ||||
| 1 Year | 2 Year | ||||
| PTI | PTI | PTI | % | % | |
| 2011 | 2010 | 2009 | Change | Change | |
| mils $s | mils $s | mils $s | |||
| Other Financial Corps | |||||
| US Government-Sponsored Enterprises | |||||
| Freddie Mac | (5,666) | (14,882) | (22,384) | 62% | 75% |
| Fannie Mae | (16,945) | (14,100) | (73,007) | -20% | 77% |
| Total all 2 | (22,611) | (28,982) | (95,391) | 22% | 76% |
| Diversified Financial Services | |||||
| Toyota Motor Credit | 3,003 | 1,679 | (1,052) | 79% | 385% |
| SLM | 927 | 1,433 | 272 | -35% | 241% |
| GM Financial | 622 | 353 | (48) | 76% | 1396% |
| PHH | 534 | 542 | 560 | -1% | -5% |
| KKR Fincl Holdings | 326 | 332 | 46 | -2% | 609% |
| CIT Group | 325 | 779 | (3,411) | -58% | 110% |
| NelNet | 322 | 302 | 216 | 7% | 49% |
| Credit Acceptance | 296 | 253 | 229 | 17% | 29% |
| CapitalSource | 104 | (161) | (734) | 165% | 114% |
| Ally Financial | 67 | 1,139 | (6,909) | -94% | 101% |
| Springleaf Finance | (323) | (253) | (889) | -28% | 64% |
| HSBC Finance US | (3,734) | (3,903) | (8,784) | 4% | 57% |
| Total all 12 | 2,469 | 2,495 | (20,504) | -1% | 112% |
| Rental Corps | |||||
| Hertz | 324 | (15) | (177) | 2260% | 283% |
| Avis Budget | 291 | 104 | (77) | 180% | 478% |
| Amerco | 289 | 100 | 23 | 189% | 1157% |
| Ryder System | 279 | 186 | 144 | 50% | 94% |
| Dollar Thrifty | 261 | 221 | 81 | 18% | 222% |
| Rent-A-Center | 257 | 275 | 270 | -7% | -5% |
| Aaron's | 220 | 191 | 176 | 15% | 25% |
| Total all 7 | 1,921 | 1,062 | 440 | 81% | 337% |
| Misc Other Financial | |||||
| Iron Mountain | 400 | 420 | 345 | -5% | 16% |
| CBRE Group | 430 | 290 | 28 | 48% | 1436% |
| H&R Block | 677 | 784 | 839 | -14% | -19% |
| Jones Lang Lasalle | 222 | 203 | 3 | 9% | 7300% |
| Total all 4 | 1,729 | 1,697 | 1,215 | 2% | 42% |
