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JPMorgan slashes earnings estimates on major banks

Posted Dec 1st 2009 9:20AM by Mark Fightmaster (RSS feed)
Filed under: Analyst Upgrades and Downgrades, Regions Financial (RF), Bank of America (BAC), Wells Fargo (WFC), Financial Crisis

Step away from the news for a couple of minutes and JPMorgan decides to get out its downgrade stick and go bashing the banking sector. The ratings house feels that the slowdown in growth in securities along with rising credit costs are going to impact the bottom line at major banks during the fourth quarter and on into 2010. JPMorgan lowered estimates for Bank of America (BAC), Regions Financial (RF), Wells Fargo (WFC), SunTrust (STI) and Fifth Third Bancorp (FITB).

In addition to JPMorgan's less-than-flattering assertions about the finance sector, Rochedale Securities analyst Dick Bove stated that 26 of the 30 top banks (ranked by asset size) will have to raise capital if "we go to a 12% capital ratio."

Continue reading JPMorgan slashes earnings estimates on major banks

Insurers poised for a bounce relative to banks?

Posted Feb 4th 2008 2:35PM by Michael Panzner (RSS feed)
Filed under: Indices, Market Matters, Money and Finance Today, Technical Analysis, S and P 500, Federal Reserve

Many financial stocks have been on a tear since the Federal Reserve's surprise 75-basis point inter-meeting rate cut on January 22. For example, the KBW Bank Index -- which has an equivalent exchange-traded fund, the KBW Bank ETF (AMEX: KBE) -- has rallied 16.1%, beating the S&P 500 index by more than 10 percentage points.

Yet not all financial sub-groups have kept pace with the banks. For instance, after performing well in relative terms during the fourth quarter, insurers have stalled, with the KBW Insurance Index -- which has an equivalent exchange-traded fund, the KBW Insurance ETF (AMEX: KIE) -- more-or-less tracking the move in the overall market in recent weeks.

Continue reading Insurers poised for a bounce relative to banks?