Big Bank Wrap Up: Dimon Disses Basel as Bank of America Bombs
Bank of America Corp (NYSE:BAC): Bank of America Corp (NYSE:BAC) is all set to lose its credentials as the biggest U.S. lender by assets as Chief Executive Officer Brian T. Moynihan partly dismantles the money-losing empire built by his predecessor. The firm was No. 1 in deposits, mortgage lending and credit cards. Those credentials are already gone as the CEO trims operations at a cost of more than $130 billion. He has also announced that the firm hopes to save $5 billion by the end of 2013 via cost cuts. Shares of Bank of America (NYSE:BAC) have declined 48 percent this year through September 9. Currently the share is trading at 7.05 +0.07 (1.00%), not too far from the 52 week low of 6.01. The stock sees support at 7.10. Don’t Miss: Bank of America to Eliminate 30,000 Jobs.
JPMorgan Chase & Co. (NYSE:JPM): Jamie Dimon, the CEO of the company believes that American banks should discard the Basel Group of Global Regulations. He is in favor of banks having higher capital to absorb losses in times of distress, but he is not in favor of imposing charges on the world’s largest banks. According to Reuters the CEO currently is not expecting any job cuts at the firm. The stock is currently trading at $32.42. The stock has hit a new 52 week low of 31.21.
Goldman Sachs Group Inc. (NYSE:GS): Goldman Sachs Group Inc. (NYSE:GS) shares fell in trading today as concerns over the euro zone debt crisis continue to mount. Speculation that Germany (NYSE:EWG) is preparing for a possible Greek default dragged bank shares lower in Europe and the U.S. Goldman shares fell to a 52-week low in trading today. The stock has fallen more than 6% in the last three trading sessions. Goldman is among the 17 financial firms sued by the Federal Housing Finance Agency (FHFA) recently over the sale of mortgage-backed securities to Fannie Mae and Freddie Mac leading up to the financial crisis.
Citigroup Inc. (NYSE:C): Citigroup Inc. (NYSE:C) has cut U.S. Bank (NYSE:KBE) profit targets by 45% due to the slowdown in Europe. According to Citigroup Inc. (NYSE:C) Morgan Stanley (NYSE:MS) may post profit of 25 cents a share, lower than a previous estimate of 36 cents. On the other hand, Goldman Sachs Group Inc. (NYSE:GS) may report earnings of 10 cents a share, down from $2.70. Even JPMorgan Chase & Co. (NYSE:JPM), the most profitable U.S. bank, may report $1.17 a share, down from $1.26. Citigroup Inc. (NYSE:C) has been appointed by Diamond Hill Capital Management, Inc. to provide a range of investor support services for the firm’s fund assets totaling $4 billion. The stock is trading at 26.96 -0.82%.