Early Friday morning, Bank of America (BAC) reported a fourth-quarter loss of 16 cents per share ($1.2 billion). This includes the company's previously announced goodwill impairment charge of $2 billion that was related to its home loans and insurance business. Taking this charge out of the equation, BAC earned 4 cents per share. It could be an interesting morning for BAC, as experts predicted earnings of 18 cents per share.

Shares of BAC were down more than 2% as we await the opening bell. This drop should push the stock low enough to mount a serious challenge to the support of both BAC's 20-month moving average and the $14 level.

Continue reading Bank of America Posts $1.24 Billion Loss for Fourth Quarter

Bank of America Posts $1.24 Billion Loss for Fourth Quarter originally appeared on BloggingStocks on Fri, 21 Jan 2011 09:00:00 EST. Please see our terms for use of feeds.

Bank earnings are upon us. Citi (C) reported a $4.4 billion profit, the largest positive number in three years. Last week JPMorgan Chase (JPM) and Bank Of America (BAC) had great numbers to crow about as well. Part of the good news came from lower loan loss reserves as the economy begins to get some traction on the up side. But some of the positive report was a result of bond trading and/or investment banking. And that's a little troubling.

The reason for investor concern is that bond trading and investment banking are not sustainable business models. They are more like geysers: they shoot up beautifully when the timing is right -- but one never knows when that timing is, unless the geyser is Old Faithful, which none of the bond trading or investment banking deals are. Yes, they contribute hugely to the bottom line as bond traders catch a trend in interest rates and make extraordinary gains or develop new products that create new revenues. But just as quickly the bond market can turn (like the stock market), and large gains turn to losses.

Continue reading Comfort Zone Investing: Bank Earnings: Look Beneath the Headlines

Comfort Zone Investing: Bank Earnings: Look Beneath the Headlines originally appeared on BloggingStocks on Sat, 24 Apr 2010 10:30:00 EST. Please see our terms for use of feeds.

Continue reading JPMorgan Leads in Year Bankers Make Money on Each Other

JPMorgan Leads in Year Bankers Make Money on Each Other originally appeared on BloggingStocks on Thu, 04 Mar 2010 11:40:00 EST. Please see our terms for use of feeds.

The financial crisis, employment market and social media explosion have converged, providing a new level of clarity into what is happening in the world around us. Where was ground zero for this financial catastrophe? Well, according to the LinkedIn blog, five companies have shown the most action: Barclays (BCS), Credit Suisse (CS), Citigroup (C), Bank of America (BAC) and JPMorgan Chase (JPM). Interestingly, Goldman Sachs (GS), among the biggest winners now that we're pulling out from the recession, didn't see as much play.

Continue reading Financial Crisis Didn't Push Bankers from Industry, LinkedIn Reports

Financial Crisis Didn't Push Bankers from Industry, LinkedIn Reports originally appeared on BloggingStocks on Sun, 21 Feb 2010 15:10:00 EST. Please see our terms for use of feeds.

Continue reading Investment Banking Unit Pushes JPM to Strong Profit

Investment Banking Unit Pushes JPM to Strong Profit originally appeared on BloggingStocks on Fri, 15 Jan 2010 08:30:00 EST. Please see our terms for use of feeds.

Continue reading Goldman Sachs discusses pay with major investors

Goldman Sachs discusses pay with major investors originally appeared on BloggingStocks on Thu, 03 Dec 2009 10:30:00 EST. Please see our terms for use of feeds.

What has Blackstone (NYSE: BX) been doing with all those theme parks it's been buying? Well, the answer is becoming a bit clearer now. The private equity firm is getting ready to take theme park operator Merlin Entertainments public early next year.

Several investment banks have already been called to advise on the transaction, including Citigroup (NYSE: C), Goldman Sachs (NYSE: GS), Deutsche Bank (NYSE: DB), UBS (NYSE: UBS), and Nomura (NYSE: NMR). If all goes as planned, the deal could be good for $3.33 billion.

Continue reading Will Blackstone make magic with Merlin?

Will Blackstone make magic with Merlin? originally appeared on BloggingStocks on Sun, 25 Oct 2009 14:40:00 EST. Please see our terms for use of feeds.

Technician Leo Fasciocco, who focuses on stocks breaking out of resistance zones, is banking on JPMorgan (NYSE: JPM), as a breakout buy on its rise over $39. Here's the latest from Ticker Tape Digest.

"JPM is one of the dominant financial firms. It has 30 million consumer customers and the world's most prominent corporate, institutional and government clients.

"Recent tape action indicates good institutional buying interest. JPM's long-term chart shows the stock making a bottom around 15 in March. It has since rallied and double in price.

Continue reading JPMorgan (JPM): A breakout buy

JPMorgan (JPM): A breakout buy originally appeared on BloggingStocks on Fri, 07 Aug 2009 11:00:00 EST. Please see our terms for use of feeds.

Banking crisis? Well, banks continue to post profits. Look at Barclays PLC (NYSE: BCS), which today reported a $3.15 billion profit for the first half of 2009.

Why the growth? Interestingly enough, Barclays got a big boost from its investment banking division (which is focused on mergers & acquisitions, public offerings and capital raises). Keep in mind that the company purchased the U.S. operations of Lehman Brothers.

And the strength is no fluke. Other major banks -- such as Goldman Sachs (NYSE: GS), Credit Suisse (NYSE: CS) and JPMorgan Chase (NYSE: JPM) -- also posted strong results with investment banking.

Continue reading For Barclays, dealmaking saves the day

For Barclays, dealmaking saves the day originally appeared on BloggingStocks on Mon, 03 Aug 2009 12:20:00 EST. Please see our terms for use of feeds.

Continue reading Hedge fund goes public . . . through the backdoor

Hedge fund goes public . . . through the backdoor originally appeared on BloggingStocks on Fri, 05 Jun 2009 12:30:00 EST. Please see our terms for use of feeds.

Continue reading A day ahead of earnings, Goldman Sachs raises $5.5 billion for private equity fund

A day ahead of earnings, Goldman Sachs raises $5.5 billion for private equity fund originally appeared on BloggingStocks on Mon, 13 Apr 2009 11:00:00 EST. Please see our terms for use of feeds.

The nearly universal sentiment about investment banking is that it's dead. And I can understand why. M&A is tepid. IPOs are gone. Lending is extremely difficult. So, where can firms like Goldman Sachs (NYSE: GS) and Morgan Stanley (NYSE: MS) make money?

Bear in mind that these firms think about this every day. Over decades, they have also found ways to make big-bucks in almost any environment.

Actually, according to a cover story in Barron's [a paid publication], it looks like these firms may have yet-again found another way to thrive in a difficult environment.

Continue reading Goldman and Morgan: Revving up the money machines?

Goldman and Morgan: Revving up the money machines? originally appeared on BloggingStocks on Sun, 15 Mar 2009 10:40:00 EST. Please see our terms for use of feeds.

Morgan Stanley (NYSE: MS) may cut 5% of its workforce. Given the drop-off in investment banking activity and asset management, the number may not be high enough, but it is a start. Wall Street is still worried about the bank's future, as its stock price shows. Shares change hands at $21, down more than 50% during that last year. Morgan is doing better than some other companies in its sector, but the deepening recession could hurt earnings more than last year.

According to The Wall Street Journal (subscription requited), "The New York firm, which let go of about 7,000 employees last year, may decide on another round of staffing cuts in the next two weeks."

Continue reading If Morgan Stanley (MS) cuts jobs, stock may rise

If Morgan Stanley (MS) cuts jobs, stock may rise originally appeared on BloggingStocks on Fri, 30 Jan 2009 10:00:00 EST. Please see our terms for use of feeds.

Just when you think you've heard it all, you hear more. In the last year, Wall Street -- or more specifically, the brokerage units of New York financial companies -- lost $35 billion. (Worldwide, financial institutions have taken $1 trillion in write-offs of bad assets). Those firms received a large proportion of the $350 billion TARP and persuaded the Treasury to guarantee losses from hundreds of billions worth of their financial toxic waste. Their reward? $18.4 billion in bonuses.

How much of the TARP went to paying for those bonuses? The banks have cleverly neglected to report that. But let's face it -- money is fungible. So if they did not use the money from the deposits they received from the Treasury to pay bonuses, our tax dollars freed up cash they may have had from other sources that did go to paying those $18.4 billion in bonuses.

Continue reading Wall Street loses $35 billion in 2008, uses TARP for $18.4 billion bonus

Wall Street loses $35 billion in 2008, uses TARP for $18.4 billion bonus originally appeared on BloggingStocks on Thu, 29 Jan 2009 11:15:00 EST. Please see our terms for use of feeds.

JPMorgan Chase (NYSE: JPM) posted earnings Thursday. In a surprise to analysts, who had been expecting a break-even quarter, JPM reported earning 7 cents for the fourth quarter.

While the report showed a 76% decline from the previous year, the news pushed the stock to early gains in the face of a drop in the Dow.

Typical of the lack of conviction in the markets, JPM gave up early gains. Subsequent trading restored the stock to the positive column before it succumbed to a late-day sell-off that shaved more than 6% from its market value.

The mid-morning decline in JPM occurred as Bank of America (NYSE: BAC) plummeted to a new low at $7.50. BAC is sagging under the weight of absorbing Countrywide and Merrill Lynch, both of which have proven more difficult to digest than earlier thought.

Bank stocks in general are under heavy selling pressure after Federal Reserve Chairman Ben Bernanke declared Wednesday that billions more will be required to restore stability to the nation's (and the world's) banking system.

Continue reading JPMorgan up on earnings report

JPMorgan up on earnings report originally appeared on BloggingStocks on Fri, 16 Jan 2009 11:06:00 EST. Please see our terms for use of feeds.

This post is part of a special annual report -- Top Stock Picks '09 -- in which TheStockAdvisors.com asked 75 leading newsletter advisors to select their favorite investment for the new year.

"I've followed Gladstone Capital (NASDAQ: GLAD) for many years," says Mark Skousen in Forecasts & Strategies. Here, he chooses the business development company as a top idea for 2009.

"Gladstone is a business development company (BDC) run by the 'father of BDCs,' David Gladstone. Gladstone is a conservative investor who is careful in his lending.

"His investment company, Gladstone Capital, specializes in debt investments in small- and medium-sized companies that seek additional funding, recapitalization, debt reduction, and short-term bridge financing.

"Unlike other BDCs, Gladstone always has been prudent in its lending. It has no exposure to subprime mortgages and no exposure to home building -- but it is being hurt by U.S. recession fears.

"Though the shares are volatile, I think the stock is dirt cheap, having suffered a sharp sell-off due to the deep recession and financial crisis.

"It is off 70% so far this year, which is far too much, in my judgment. With any kind of economic recovery under an Obama administration, I expect Gladstone to be back in good form.

Continue reading Top Stock Picks '09: Gladstone Capital (GLAD)

Top Stock Picks '09: Gladstone Capital (GLAD) originally appeared on BloggingStocks on Wed, 14 Jan 2009 10:00:00 EST. Please see our terms for use of feeds.

New accounting rules could curb investment banking fees originally appeared on BloggingStocks on Thu, 08 Jan 2009 09:22:00 EST. Please see our terms for use of feeds.

Credit Suisse hands out illiquid junk for bonuses originally appeared on BloggingStocks on Mon, 22 Dec 2008 11:29:00 EST. Please see our terms for use of feeds.

It would be pretty nifty to bank online with Goldman Sachs (NYSE: GS). It is the world's premier investment bank, although it has converted itself to a commercial bank to get government funding.

Still, saying I bank online with Goldman sounds better than saying I bank online with the First National Bank of Akron Ohio.

According to The Wall Street Journal, "If Goldman goes ahead, the new unit will seek deposits that can be used to fund various businesses now that Goldman is a bank-holding company." In other words, now that Goldman is a bank, it wants to drive up deposits. Starting an online bank is cheaper than going out and buying a number of regional banks to pick up their depositor bases.

All kidding aside, the chance to have an account at such a prestigious financial institution could draw a great deal of money, especially from the well-to-do. A marquis name should make for marquis customers. And, that should bring Goldman a lot of the assets it needs to fund its more profitable businesses.

Douglas A. McIntyre is an editor at 247wallst.com.

Internet banking at Goldman Sachs (GS) originally appeared on BloggingStocks on Wed, 03 Dec 2008 09:13:00 EST. Please see our terms for use of feeds.

Bloomberg is reporting that the global banking industry could lose 350,000 jobs by the middle of next year. That would be about 20% of the employees in the sector.

That level of unemployment represents an almost unimaginable human tragedy and one that might have been avoided in part if management at large financial house had not bet the bank on mortgage derivatives. But, that is water under the bridge.

The question which gets begged is where all of those people will go. Many bankers are not qualified for other high-paying jobs, which means they will stay unemployed for long periods or will face having to take significant cuts in their incomes. Either way, the shift will take a large toll on government services such as unemployment benefits. Let's not forget the lost taxes.

The destruction of the banking industry is a microcosm of what many happen across sector after sector if the recession bites hard. Autos may be the next domino to fall, but retail and hospitality won't be far behind it. Suddenly hundreds of thousands of jobs become millions, and, if things get especially bad, tens of millions.

Financial services is the canary in the coal mine. If the industry cannot fine some employment equilibrium it is bad for everyone.

Douglas A. McIntyre is an editor at 24/7 Wall St.

Banking industry may lose 350,000 jobs originally appeared on BloggingStocks on Fri, 21 Nov 2008 10:53:00 EST. Please see our terms for use of feeds.