Citi Follows The Morgue's Lead, Reports $1.9 Billion in Earnings as a Result of CDS Blowout

Citigroup has reported 3Q Net Income of $3.8 Billion, with $1.9 Billion of that coming from CVA (credit valuation adjustment...fancy slang for credit default swaps losses).
Wonder what the IRS would think next April if we all tried this time of accounting for our income taxes.  Hey, if JP Morgan and Citibank are cool it must be fine, right?

Citigroup Reports Third Quarter 2011 Net Income of $3.8 Billion, Compared to $2.2 Billion in Third Quarter 2010

Earnings Per Share¹ of $1.23 versus $0.72 in Third Quarter 2010

Third Quarter 2011 Revenues of $20.8 Billion Included $1.9 Billion of CVA²

Earnings Per Share Excluding CVA of $0.84³

Net Credit Losses Declined 41% from Prior Year Period to $4.5 Billion

Loan Loss Reserve Release of $1.4 Billion in Third Quarter, Down from $2.0 Billion in Each of Second Quarter 2011 and Third Quarter 2010

Tier 1 Common of $115.3 Billion, Tier 1 Common Ratio of 11.7%

Citi Holdings Assets of $289 Billion, 31% Lower Than Prior Year Period
Earnings Release: