Grim News From Investment Banks

by Jack Kelly on May 30, 2012

Morgan Stanley Things are not looking too good for investment banks. BofA Merrill Lynch analysts warned that major investment banks including JP Morgan, Goldman Sachs, Morgan Stanley and Citigroup will be adversely impacted by the consequences of the Greek/Spain/Italy/Portugal/countries to be name later financial crises, new regulations resulting from JPMorgan’s massive trading loss, and possible credit agency downgrades. The analysts lowered their second quarter earnings estimates for these banks on expectations of decreased revenues.

Here’s more from Deal Journal:

BofA-Merrill cut its estimate on Goldman’s EPS by more than half to $1.15 a share from $2.47 a share. That compares to the consensus from analysts polled by Thomson Reuters of $2.51 a share.

The figure on J.P. Morgan’s reported earnings were cut to 61 cents from 67 cents after already being slashed from $1.16 to 67 cents in the wake of the chief investment office’s trading losses.

Morgan Stanley’s EPS was cut to 38 cents from 48 cents, compared to the consensus analyst estimate of 52 cents a share.

And Citigroup was cut to 94 cents from $1.03, compared with the consensus of $1.

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