While $17 billion of lost market capitalization has cost CME Group Inc. the title of world’s most valuable exchange owner, its stock commands a valuation that would make buying Germany’s Deutsche Boerse AG a bargain.
The six largest U.S. lenders, including JPMorgan Chase & Co. and Wells Fargo & Co., may post an 11 percent drop in first-quarter profit, threatening a rally that pushed bank stocks 19 percent higher this year.
Two years after Lehman Brothers Holdings Inc. collapsed under $613 billion of debt, investors are questioning whether the investment-banking model that fueled record profits in the middle of the decade can be repaired.
Deutsche Boerse AG’s $9.53 billion all-stock purchase of New York Stock Exchange parent NYSE Euronext creates the world’s largest owner of equities and derivatives markets, and may spur additional mergers.
Bank of America Corp. and Citigroup Inc. are among lenders that may find it more difficult to boost profits and capital after the Federal Reserve pledged to keep its benchmark interest rate low until at least late 2014.
The decision by Bats Global Markets Inc., the third-largest U.S. equity exchange operator, to cancel its initial public offering emboldened brokerage and fund executives who say the way stocks trade in America doesn’t work.