Goldman Sachs (NYSE:GS), Barclays (NYSE:BCS), Bank of America (NYSE:BAC) and Credit Suisse (NYSE:CS) are reportedly set to bid in a mortgage bond auction tomorrow. The bonds worth $7 billion are held by the Federal Reserve Bank of New York and formerly owned by AIG. A strong sale could prompt a rally in sub-prime debt prices, as the auction will remove a large amount of supply.
Bank of New York Mellon (NYSE:BK) reaches a partial settlement with government prosecutors over civil fraud charges related to client prices on forex trades. Prosecutors had sought hundreds of millions of dollars in penalties, but so far there is no mention of the amount of the settlement. However, talks are ongoing.
Goldman Sachs’ (NYSE:GS) fourth quarter investment banking revenue is down 43% year-over-year, but up 10% from the third quarter. Underwriting revenues are down 56% year-over-year, as well as compensation costs which dropped 21% year-over-year.
BancorpSouth (NYSE:BX) shares slide. The dramatic downward shot follows the firm’s announcement of a $100 million secondary offering. The sale of shares represents close to 11% of the bank holding company’s market cap.
State Street (NYSE:STT) missed its earnings. It said in response that it would make further cost cuts at its capital-markets operations due to what it expects to be continued weakenss in global markets. Profits rose 4.4% to $454 million, though shares are down.
PNC Financial Services (NYSE:PNC) trails the market after its fourth quarter earnings per share missed estimates. Profit nose dived down to 42% year-over-year as the lender continued to struggle with a decline in revenue and steep charges. One positive takeaway however, is that credit costs continue to fall with loan loss provisions totaling $190 million for the quarter. The loan losses are down significantly from $442 million the year before.
Investing Insights: PNC Financial Services GroupThe Earnings: Below Analysts’ Estimates.