Big Banks Can Agree on at Least One Thing
For weeks, protesters have gathered outside of Wall Street. Investors and Analysts inside the buildings they surround don’t agree on much. However, the nation’s biggest banks — Bank of America (NYSE:BAC), Citigroup (NYSE:C), JP Morgan (NYSE:JPM), Wells Fargo (NYSE:WFC), Goldman Sachs (NYSE:GS) — agree on far more than meets the eye.
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Overall, with revenue expected to see a 4% decrease, banks are likely to increase charges on consumers’ accounts to fluff up trading budgets. The earnings are expected to be about what they were in 2002, and are at their lowest since 2005, according to data from Trepp. Investing in banks (NYSE:KBE) during this time is likened to investing in airline stock shortly after the September 2001 attacks. David H. Ellison, a mutual fund manager for FBR stated, “no one wants to own the group, everyone thinks it is not the place to be.”
“Besides leaving consumers infuriated, the debit card fees have also drawn the wrath of the White House, with President Obama warning last week that customers should not be ‘mistreated’ in pursuit of profit, while Vice President Joseph R. Biden Jr. characterized moves to hit consumers with new charges ‘incredibly tone deaf.’ Senator Richard J. Durbin of Illinois, the No. 2 Senate Democrat, took the unusual step of denouncing Bank of America on the Senate floor, urging customers to ‘vote with your feet, get the heck out of that bank,’” according to The New York Times.
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