JPMorgan Chase & Co. said it plans to get out of the business of owning and trading physical commodities ranging from metals to oil, three days after a U.S. Senate panel questioned whether banks are abusing their ownership of raw materials to manipulate markets.
Federal Reserve Chairman Ben S. Bernanke’s plan for paring central bank bond purchases will squeeze profit and erode capital through 2014 at the six largest U.S. lenders, overshadowing second-quarter earnings that are projected to rise by an average of 20 percent.
Wall Street banks, buoyed by record stock-market prices and high-yield bond issuance, probably will report a jump in second-quarter trading and investment-banking revenue from the same period a year ago.
BankUnited Inc., Comerica Inc., TCF Financial Corp., First Republic Bank and Texas Capital Bancshares Inc. are the most likely regional lenders to put themselves up for sale based partially on how much their chief executive officers stand to make from a deal, a report found.
It’s been a rough three years for banks, securities firms and insurers -- even rougher for the analysts whose job it is to predict how the stocks of these firms will perform, Bloomberg Markets reports in its November issue.
JPMorgan Chase & Co. , the most profitable U.S. bank, is taking trading revenue from Goldman Sachs Group Inc. and Bank of America Corp. as investments including its $1.7 billion purchase of RBS Sempra’s commodities business begin paying off, Deutsche Bank AG analysts said.
Profit estimates for Bank of America Corp. and other large U.S. lenders may need to be slashed as much as 30 percent if economic growth slows to 1 percent or less, according to analysts at Deutsche Bank AG.
The Federal Reserve’s policy of keeping interest rates persistently low, which has helped boost bank earnings over the last six quarters, is beginning to make it harder for the biggest U.S. lenders to make money.