Banks, Profit | featured news

Freddie Mac reported a surprising profit in the second quarter, but the profit turned to a loss for shareholders after the company paid the U.S. government a $1.1 billion dividend.

The company, reporting its first profit since 2007, said quarterly net income was $1.8 billion.

Citigroup Inc, one of the big U.S. banks hit hardest by the financial crisis, posted a quarterly profit as gains from the sale of its Smith Barney brokerage into a joint venture more than offset losses from its primary banking businesses.

JPMorgan Chase becomes the second major US bank to report a big rise in profits for the April to June period.

Goldman Sachs earned second-quarter profits of $3.44 billion, continuing a robust turnaround since it rode out the tumultuous final months of 2008 with the help of a federal rescue.