Big TARP banks have been in rally mode as of late, as the CEOs of Citigroup and Bank of America raised hope that the banks would soon return to profitability. How likely is it that we'll see some actual profits in the first quarter? The chances are reasonably good, according to TheStreet.com.

Loan-loss reserve write-offs in 2008 suggest "that there's plenty of room for them to maneuver in their quest for improved first-quarter earnings. For Citigroup, JPMorgan and Bank of America, decisions to reduce quarterly provisions for loan loss reserves could be justified, since the companies reserved sufficiently to keep ahead of the pace of loan losses during 2008. This would boost earnings considerably," reports TheStreet.com. 

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