📈 Fed's first cut since 2020: Time to buy the dip? See Tech-focused stock picksUnlock AI Picks

US bank stocks mostly lower as executives paint gloomy growth picture

Published 11/09/2024, 19:28
© Reuters
C
-
GS
-
JPM
-
WFC
-
MS
-

Investing.com -- U.S. bank stocks fell Wednesday, as banking executive continued warn of a slower recovery in investment banking. 

 
Citigroup Inc (NYSE:C), Wells Fargo & Company (NYSE:WFC), and Morgan Stanley (NYSE:MS) were in the red in recent trading, while 
JPMorgan Chase & Co (NYSE:JPM) and Goldman Sachs Group Inc (NYSE:GS) were marginally higher.
 
Speaking at a financial conference, Morgan Stanley President Dan Simkowitz said he expects
lower interest income in the third quarter, adding to the negative chorus about the Wall Street banking outlook from the executives at Citigroup, JPMorgan and Goldman Sachs.   
 
Simkowitz also said that M&A and IPO activities will continue to lag behind historical trends through the end of the year.
 

Earlier this week, JPMorgan Chase & Co said that analysts forecasts for next year’s net interest income were too optimistic, while Goldman Sachs warned that trading revenues would be 10% lower in Q3 from a year earlier. 

Citigroup's CFO Mark Mason on Monday, meanwhile, warned that markets revenue was likely to drop 4%. 

The negative sentiment on Wall Street banks was compounded after Warren Buffett's Berkshire Hathaway (NYSE:BRKa) announced in regulatory filing that it had sold more shares, cutting its stake in the bank to 7%. 

But it wasn't all negative for news for banks so far this week after they scored a reuglatory reprieve as the Fed proposed to make changes to plans that would have required banks to increase the amount of regulatory capital held. 

"Overall, the re-proposal is less onerous on all banks with more than $100 billion in assets and the increases in required capital levels will be much lower than called for in the original proposal," RBC said in a recent note.

 

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.