For the first time since 2007, General Motors announced a quarterly profit this morning for its first quarter.

The Detroit automaker reported that it earned $865 million during the quarter, and that revenues were up 40% to $31.8 billion. During the same period last year the company had a loss of $6 billion.

Goldman Sachs (GS) offered up a blowout quarterly report Tuesday. GS earnings were the second best on record and short only of Goldman fourth quarter earnings report from just a few months ago.

In the wake of recent fraud allegations against the investment bank, there's plenty of reason for politicians and taxpayers to grumble. But don't think it's envy over the record profits -- the real problem here isn't the big buckets of money being pulled in by Goldman Sachs, but the source of the income. Consider that without all the money GS made on Wall Street via proprietary trading, the bank's quarterly profits would be just $2.53 billion -- about half the profits put up by U.S. Bancorp (USB) the same day.

In a long standing court battle between the media and the Fed, a decision to release bail out documents was handed down by the US Court of Appeals.

Last year, two reporters from Bloomberg News filed for disclosure of the documents under the Freedom of Information Act. Later a similar suit was filed by Fox News. The Fed countered that such information would cause "competitive and reputational harm" perhaps triggering bank runs and implode the central bank's ability to effectively manage the current and any future financial crisis.

Can you imagine this! American International Group (AIG) is paying its employees $100 million in bonuses.

This is after AIG was bailed out to the tune of $182 billion by the U.S. government. The government owns 80% of the insurance giant. AIG employees have agreed to a $20 million cut. However, some employees are screaming that that is not enough. They claim that their contracts dated earlier than the bailout must be honored.

Ben Bernanke, Chairman of the Federal Reserve, is scheduled to testify before Congress on December 3rd. The hearings will determine whether he will be confirmed for another term.

Bernanke is faced with increasing criticism for his handling of the financial crisis and lack of transparency. Representative Ron Paul has a bill before the House demanding an accounting of what the Fed has done with all the money it is spending.

The New York Times has a nice write-up on the small, local banks that are taking advantage of their bailout virginity to lure in customers who might prefer to do business with a bank that isn't on welfare.

USAA Federal Savings Bank (Full Disclosure: I have my mortgage and credit card with USAA and it is easily the best financial institution in the world) has begun touting its lack of bailout money in a $25 million ad campaign with the tag line "Banks don't need bailouts, people do." Worthington National Bank put up a sign that says "Just say no to bailout banks."

You're now free to invest in Iceland ... should you be so inclined. On Sunday, the country will begin lifting its post-financial disaster capital controls, giving investors a bit more elbow room. Foreign currency investments coming in won't be subject to the existing controls.

According to a statement released by Iceland's central bank, "Investors are authorized, without restrictions, to convert into foreign currency the sales proceeds from assets in which they invest after Nov.1." The statement also said, "Previously, non-residents were fully authorized to transfer foreign currency deriving from interest and dividends on investments in Iceland."

The Wall Street Journal reports (subscription required) that GMAC Financial Services Inc. (NYSE: GKM) is seeking a third round of bailout funds from the Treasury Department ranging from $2.8 billion to $5.6 billion. This is, the WSJ writes, "a stark reminder of how some battered financial firms remain dependent on government lifelines."

Here's what is so incredibly so screwd up about this: GMAC provides financing for car buyers. Any personal finance expert will tell you that borrowing money to buy a car is one of the dumbest things that you can possibly do.

And the madness continues: When General Electric (NYSE: GE) settled SEC securities fraud charges yesterday by paying a fine of $50 million, it was chump change in the context of the volume of federal assistance the company has already received.

"GE bent the accounting rules beyond the breaking point," said Robert Khuzami, Director of the SEC's Division of Enforcement.

"Overly aggressive accounting can distort a company's true financial condition and mislead investors." said David P. Bergers, Director of the SEC's Boston Regional Office. "Every accounting decision at a company should be driven by a desire to get it right, not to achieve a particular business objective. GE misapplied the accounting rules to cast its financial results in a better light."

Where on earth can you buy things on sale for less than bargain prices?

Imagine that you were shopping for a nice shirt, or watch, or bicycle and you have been tracking the prices all year (or ten) and the thing finally goes on sale. You drive to the store and while you are in transit, unknown to you, the store manager puts a half price sticker on the item. You would be overjoyed with glee! To buy something at half the price you already thought was a bargain -- that would be amazing!

The fact is that this year the stock market has provided that opportunity. This year for the first time in most of our lives, you were able to do that to a degree that we have not witnessed before and have only read about.

If you've been desperately waiting for a new Merle Hazard song, the long winter is over: Merle is back with 'Bailout', a charming country ballad all about bailouts.

It's not an immediate classic the way that the catchy H-E-D-G-E F-U-N-D was, but for lyrical depth and detail, it's definitely a new high for Mr. Hazard.

The song includes a scathing critique of Ben Bernanke, who is dismissed as an "academic." Watch the video below the cut.

Word that Wall Street bailout bank total compensation (base and bonus) will likely be very high again this year, is almost certain to spark renewed righteous indignation among at least some U.S. investors/voters.

It's a valid complaint, given the mistakes -- and in some cases outright fraud -- by the nation's investment banks. But it's best to express the complaint, and move on. And the reason is obvious enough, as New York Times (NYSE: NYT) business journalist Floyd Norris reminds us.

A half-year ago, Norris incisively observed that, "Justice and success don't come together in the solution for the financial crisis."

Home foreclosure filings in the United States hit a record 1.9 million in the first half of 2009, according to RealtyTrac –-- on more than 1.5 million properties. Again, unemployment is one of the primary culprits, as a lack of income makes it pretty tough to bring a loan at risk of default up to date. The number of filings is up 9% from the second half of 2008 and up almost 15% from the same period last year.

Last month, foreclosure filings were up 5% relative to May and up 33% from June 2008. The month's action was the third highest on record, and it was the fourth month in a row in which there were filings on more than 300,000 properties.

Here is today's quiz. If you were given $1,000,000 to spend each day, how many days would it take you to spend $12.2 trillion dollars? You are probably wondering where the number $12.2 trillion came from? Well, this is the amount of money the government has committed for economic recovery.

Some of the monies can be accounted for but its still a big mystery where the rest went. So far we know this:

A report today in The New York Post reveals that bailed-out Bank of America (NYSE: BAC) is still doling out millions in bonuses to attract and retain top banking talent. Bank of America is catching heat over the bonus payouts, since it hasn't yet received federal clearance to repay its $45 billion in TARP loans.

Bank of America allegedly shelled out $15 million over two years to keep Fares Noujaim, an alumnus of both Bear Stearns and Merrill Lynch, who now serves as the company's vice chairman of investment banking. Harry McMahon is named as another banker who's been enticed to stay with handsome bonuses.