Goldman Sachs Group Inc. (GS), whose shares have fallen 43 percent this year, may report its lowest quarterly profit since the 2008 financial crisis. Far from Wall Street, Wells Fargo & Co. (WFC) is headed for record earnings.
Third-quarter U.S. bank earnings, which kick off with JPMorgan Chase & Co. (JPM) on Oct. 13, will show that investment- banking businesses such as bond trading and merger advice declined, while retail operations like mortgage lending prospered, according to analysts including Richard Staite at Atlantic Equities LLP in London.
It’s a reversal from 2009 and early 2010, when rising markets and a perfect trading record propelled New York-based Goldman Sachs to its highest profits ever, as commercial lenders including SunTrust Banks Inc. (STI) in Atlanta charged off billions of dollars of delinquent mortgages.
“You’re going to see a big divergence between very poor earnings from pure capital-markets businesses and quite solid performance from the pure retail banks, particularly those that have a mortgage-origination business,” said Staite.
http://www.bloomberg.com/news/2011-10-10/goldman-sachs-earnings-collapse-seen-as-wells-fargo-heads-for-record-year.html
Third-quarter U.S. bank earnings, which kick off with JPMorgan Chase & Co. (JPM) on Oct. 13, will show that investment- banking businesses such as bond trading and merger advice declined, while retail operations like mortgage lending prospered, according to analysts including Richard Staite at Atlantic Equities LLP in London.
It’s a reversal from 2009 and early 2010, when rising markets and a perfect trading record propelled New York-based Goldman Sachs to its highest profits ever, as commercial lenders including SunTrust Banks Inc. (STI) in Atlanta charged off billions of dollars of delinquent mortgages.
“You’re going to see a big divergence between very poor earnings from pure capital-markets businesses and quite solid performance from the pure retail banks, particularly those that have a mortgage-origination business,” said Staite.
http://www.bloomberg.com/news/2011-10-10/goldman-sachs-earnings-collapse-seen-as-wells-fargo-heads-for-record-year.html
Everywhere everybody in the financial sector wants to tap in to the taxpayers money, either via outright bailouts or by the removal of the Glass-Stegall act, alloving financial institutions to take as security for their higly leveraged derivates nonsens peoples bank savings.
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