Financial Biz Cheat Sheet: Greece Knocks Out Banks
This morning’s surprise news of the Greek Referendum is crushing banks stocks today. Battered companies include Bank of America (NYSE:BAC), Morgan Stanley (NYSE:MS), JPMorgan Chase & Co. (NYSE:JPM), Citigroup Inc. (NYSE:C) and Goldman Sachs Group (NYSE:GS).
Credit Suisse Group AG (NYSE:CS) reported its third quarter 12 percent net profit rise came from an accounting gain in firm credit spreads. The $683 million Swiss francs ($776 million) profit came in under analysts’ forecast of $1.1 billion Swiss francs. Revenue increased 8.5 percent to $6.82 billion Swiss francs. The company also said it plans an additional 1,500 job cuts along with the 2,000 announced in July.
H&R Block, Inc. (NYSE:HRB) saw its TaxAct acquisition plans die after a federal judge ruled that the $287 million potential merger would violate U.S. antitrust law. The Department of Justice has previously filed a suit to stop the transaction, alleging that it “substantially reduces competition” and results in “higher prices and a reduction in innovation and quality.”
The ruling comes at a good time for the DOJ as it prepares to block a parallel deal: AT&T’s (NYSE:T) merger with T-Mobile (DTEGY.PK).
Investment bank Jefferies Group, Inc. (NYSE:JEF) tried to distance itself from the MF Global (NYSE:MF) fallout and its exposure to European government debt by issuing a statement. It included language that the firm “has no meaningful exposure to the sovereign debt of the PIIGS,” nor does it have “any repo-to-maturity activity or related off balance-sheet derivative activity.”
Bank of America (NYSE:BAC) retreated on its $5 debit-fee charge after a strong backlash by customers. The company is a little behind the curve in its change of heart after its rivals tested fees and decided to not implement them. SunTrust Banks Inc. (NYSE:STI)and Regions Financial Corp. (NYSE:RF) announced their decision on Monday while Wells Fargo & Co. (NYSE:WFC) and J.P. Morgan Chase & Co. (NYSE:JPM) dropped fee plans last week.
Investing Insights: Here Are The Biggest Winners & Losers From MF Global’s Bankruptcy.