Exchange-traded funds that target financial firms were whipsawed as Federal Reserve Chair Janet Yellen’s remarks on interest rates left investors struggling to gauge how soon future increases will help U.S. bank profits.
Goldman Sachs Group Inc., Citigroup Inc. and Bank of America Corp. staked out sharply divergent views from the Federal Reserve on how they’d fare in a market shock, clouding prospects for higher payouts to shareholders.
The biggest U.S. banks are about to learn whether they can pay out more than $75 billion in excess capital to investors as the Federal Reserve completes stress tests of their ability to survive new economic calamities.
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.
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.
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.
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.