US banks set to suffer from trading slump

first_img More From Our Partners Why people are finding dryer sheets in their mailboxesnypost.comBrave 7-Year-old Boy Swims an Hour to Rescue His Dad and Little Sistergoodnewsnetwork.orgRussell Wilson, AOC among many voicing support for Naomi Osakacbsnews.comPolice Capture Elusive Tiger Poacher After 20 Years of Pursuing the Huntergoodnewsnetwork.orgFlorida woman allegedly crashes children’s birthday party, rapes teennypost.comAstounding Fossil Discovery in California After Man Looks Closelygoodnewsnetwork.orgMatt Gaetz swindled by ‘malicious actors’ in $155K boat sale boondogglenypost.comNative American Tribe Gets Back Sacred Island Taken 160 Years Agogoodnewsnetwork.orgA ProPublica investigation has caused outrage in the U.S. this whatsapp Sunday 17 October 2010 11:28 pm KCS-content Show Comments ▼ ANALYSTS have slashed their forecasts ahead of the slew of US banks reporting third quarter earnings this week, as concerns over a steep fall in trading activity and the housing foreclosure ruckus in the States weighed on expectations.Wall Street bank shares had rallied last week after JP Morgan topped analysts’ consensus earnings forecasts of 90 cents per share with $1.01 per share.But the sector has since taken a battering at the hands of investors as it suffers a probe into illegal mortgage foreclosure practices and fears over the earnings impact of a slowdown in Wall Street securities activity.The banks reporting next week are widely expected to record an uptick in profits due to lower one-off impairment charges, though analysts are concerned that the trading slump over the summer will have disproportionately hit investment banking revenues.Citigroup, which reports third quarter earnings today, is expected to post earnings of 5.7 cents per share, down from an analyst consensus of 6.25 cents per share just a week ago, according to Thomson Reuters data.Predictions for Goldman Sachs earnings per share, revealed tomorrow, have also dropped sharply over the week to $2.28 per share, while Bank of America, also reporting tomorrow, is now thought likely to post earnings of under 10 cents per share.Morgan Stanley is expected to earn between 15 and 20 cents per share, down from 38 cents a year ago.Wall Street has been hit with a barrage of gloomy predictions in recent weeks, including renowned analyst Meredith Whitney’s prediction that 80,000 investment bankers are likely to be culled in the next two years. center_img US banks set to suffer from trading slump Share whatsapp Ad Unmute by Taboolaby TaboolaSponsored LinksSponsored LinksPromoted LinksPromoted LinksYou May LikeMisterStoryWoman Files For Divorce After Seeing This Photo – Can You See Why?MisterStoryUndoNoteabley25 Funny Notes Written By StrangersNoteableyUndoTotal PastThe Ingenious Reason There Are No Mosquitoes At Disney WorldTotal PastUndoMoneyPailShe Was A Star, Now She Works In ScottsdaleMoneyPailUndoSerendipity TimesInside Coco Chanel’s Eerily Abandoned Mansion Frozen In TimeSerendipity TimesUndoBrake For ItThe Most Worthless Cars Ever MadeBrake For ItUndoBetterBe20 Stunning Female AthletesBetterBeUndomoneycougar.comThis Proves The Osmonds Weren’t So Innocentmoneycougar.comUndoMagellan TimesThis Is Why The Roy Rogers Museum Has Been Closed For GoodMagellan TimesUndo Tags: NULLlast_img read more