US bank stocks mostly lower as executives paint gloomy growth picture
Investing.com — U.S. bank stocks fell Wednesday, as banking executive continued warn of a slower recovery in investment banking.
Earlier this week, JPMorgan Chase & Co said that analysts forecasts for next year’s net interest income were too optimistic, while Goldman Sachs warned that trading revenues would be 10% lower in Q3 from a year earlier.
Citigroup’s CFO Mark Mason on Monday, meanwhile, warned that markets revenue was likely to drop 4%.
The negative sentiment on Wall Street banks was compounded after Warren Buffett’s Berkshire Hathaway (NYSE:BRKa) announced in regulatory filing that it had sold more shares, cutting its stake in the bank to 7%.
But it wasn’t all negative for news for banks so far this week after they scored a reuglatory reprieve as the Fed proposed to make changes to plans that would have required banks to increase the amount of regulatory capital held.
“Overall, the re-proposal is less onerous on all banks with more than $100 billion in assets and the increases in required capital levels will be much lower than called for in the original proposal,” RBC said in a recent note.