Citigroup Inc. and JPMorgan Chase & Co. are bracing investors for a fourth straight drop in first- quarter trading, a period of the year when the largest investment banks typically earn the most from that business.
Morgan Stanley Chief Executive Officer James Gorman emerged as this week’s winner among the six biggest U.S. banks after shares of his firm surged on fourth- quarter results that beat analysts’ estimates.
Barclays Plc investors, blindsided by the bank’s $451.4 million regulatory fine for trying to rig benchmark rates, saw the stock drop 16 percent a day later. Other bank shareholders may be just as surprised.
Citigroup Inc., the biggest U.S. bank to have regulators reject its capital plan this year, dismantled a board committee created during the credit crisis to police the disposal of toxic and unwanted assets.
Bank analyst William Tanona has left Collins Stewart Inc., said Kevin Hornish, a spokesman for the firm. Todd Hagerman will assume coverage from Tanona, who was based in New York, Hornish said. He declined to comment further.
Wells Fargo & Co. and JPMorgan Chase & Co., the most-profitable U.S. banks, lost $6.5 billion in combined equity as rising interest rates and falling bond prices threaten capital levels across the industry.
Bank of America Corp.’s $33 billion of asset sales last year, designed to help meet international capital standards, may slice at least $2.8 billion from 2012 profit that the firm also needs to reach its target.
Citigroup Inc. advanced the most among the largest U.S. banks, reaching a six-month high after reporting a surprise third-quarter profit and a surge in bond- trading revenue that beat analysts’ estimates.