Banking, finance, and taxes
B of A Cuts TARP Giants (BAC, JPM, GS, MS)
Published:
Last Updated:
Bank of America Merrill Lynch (BofA-Merrill), the new name for the brokerage arm of Bank of America Corporation (NYSE: BAC), has come out this morning with a cautious call on brokerage firms and bank holding company giants. It has trimmed estimates on JPMorgan Chase & Co. (NYSE: JPM), Goldman Sachs Group Inc. (NYSE: GS) and Morgan Stanley (NYSE: MS). Interestingly enough, this call is not due to any crazy write-downs nor to any massive trading losses.
BofA-Merrill has noted that the trimming of estimates is due to repaying the TARP funds.
JPMorgan is now only expected to post a whopping penny in earnings per share; consensus was $0.37 EPS.
As far as the firms, Goldman’s estimates were cut more than $1.00 to $2.92; consensus was $3.31 EPS. Morgan Stanley is now expect to post a loss for the quarter as a result; consensus was $0.34 EPS.
What is interesting about this call is that Bank of America’s Ken Lewis has said over and over how he wants to repay the TARP funds as soon as he can. So what the brokerage firm’s analyst team did here in a sense is cut estimates on B of A.
The sword cuts both ways.
Jon C. Ogg
June 12, 2009
Get Ready To Retire (Sponsored)
Start by taking a quick retirement quiz from SmartAsset that will match you with up to 3 financial advisors that serve your area and beyond in 5 minutes, or less.
Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests.
Here’s how it works:
1. Answer SmartAsset advisor match quiz
2. Review your pre-screened matches at your leisure. Check out the advisors’ profiles.
3. Speak with advisors at no cost to you. Have an introductory call on the phone or introduction in person and choose whom to work with in the future
Get started right here.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
