The U.S. government is starting to see profits from the $750 billion Troubled Asset Relief Program (TARP), started last year to thwart the financial crisis.

iPhones Carry Apple Past Wall Street Estimates; Coca-Cola Beats Estimates of Overseas Sales; CIT May Still Face Bankruptcy; TARP Czar Calls for Transparency; Caterpillar Stock Jumps on Brighter Outlook; BlackRock Beats Estimates, State Street Falls Short; Merck Considering Partner For Schering-Plough Consumer Health Operations; Yahoo Sales Down, Profit Up

China Ramps Up Oil Refining; Lowe’s Tops Forecasts; Toshiba Raising $3 Billion in Stock Sale; AIG Fast-Tracking Asian Subsidiary IPO; Obama Sets First Pollution Limits on Cars; Homebuilder Confidence Highest in 8 Months; State Street Sells $1.5 Billion in Stock to Repay TARP Funds; Oil Spikes on Africa Violence, U.S. Refinery Fire

Despite promises of open government, the Obama administration tried to “cover up the very existence of smoking-gun documents” prepared for a meeting in which former U.S. Treasury Secretary Henry M. Paulson allegedly coerced major banks to allow the government to take equity stakes, according to conservative watchdog group Judicial Watch.

The results of the government’s bank stress tests were released yesterday (Thursday), and the U.S. Federal Reserve has directed 10 banks to raise an aggregate $70 billion-plus in capital.

Why wait for Tim Geithner’s rigged stress test results for banks when the underground can help you separate the winners from the losers? Thanks to research carried out by Money Morning’s Martin Hutchinson, we can pre-empt the Treasury Department and reveal which are the strongest banks are which are most poisonous.

Although we’re still in the middle of the worst financial crisis in decades, a few select banks are positioned to make a boatload of profits. And if you pick the right ones, gains of 100% or more are easily within reach.

If you think the U.S. economy is descending into a bottomless pit, hold off. But if you’re reasonably optimistic long-term, these banks are well worth considering for income-oriented investors.

President Barack Obama’s $825 billion stimulus plan heads to the floor of the House of Representatives this week, with House Minority Leader John A. Boehner, R-Ohio, saying many in his party will vote against the package unless significant changes are made.

We are reaching a stage of maximum pessimism in the market, says Louis Basenese. And that means we could be close to a great buying opportunity. But Louis says investors should only consider strong companies with robust growth prospects like ‘nuts and bolts’ firm Fastenal (Nasdaq:FAST).