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Automatic TRANSCRIPT

Banks reported mixed results in the third quarter Goldman Sachs reported a pretty steep decline in profits J. P. Morgan on the other hand posted seventh straight quarterly gain that was enough to help send US stocks to a higher close on Tuesday joining me now with more details on the banks of reported so far is Wall Street Journal reporter David Benoy David let's recap the salts we have so far it's a bit of a mixed bag Goldman Sachs saw profits fall more than a quarter and J. P. Morgan saw higher profits helped in large part by its consumer business what were the major factors at play for these two banks sure so like all his quarter quarterly earnings are a little tough to slam together I think but essentially I think if you look at Goldman Sachs eight a few years socratic things really to them where they had some investments go sour and they really struggled in their investment banking business the overall market for things like debt underwriting and St doc underwriting this fallen in in deals a little bit off this year so there's a kind of key Goldman things for J. P. Morgan it was a little bit of a story of the biggest gets stronger they saw really good strengthen their consumer bank kind of across the board which is just a powerhouse and then they also had a little bit of strength in the Investment Bank off of pretty good numbers since you mentioned the Investment Strategy we saw Goldman Stumble on its stakes in Uber how big of a role did that play it's really a special thing for kind of Goldman they certainly did not do as well as I think they would like that move around a lot it's one of the reasons why Goldman talks about trying to find a more stable earnings base because of things like that really move it a lot more than they move on jeep mortgages Morgan has some principle investment stuff but a much lower amount we also heard from Citigroup and Wells Fargo today anything interesting in the reason there sure so Citigroup had pretty decent quarter they beat expectations as well we'll profit and revenue were up and the big thing for them is they have these targets they need to hit on returns they hit the key return on tangible common equity number for this year and it sort of sets up a question for next year Mike Corbett their CEO has been promising since two thousand seventeen to hit these twenty twenty numbers in a big one as the ROTC return on tangible common equity analyst don't actually think he's GonNa hit even though he just hit this year's there's some question about whether that will continue so we're going to watch that really closely but they had a pretty good pretty record across the board their consumer businesses doing really well and in terms of their credit cards that's a big strength for them and they sort of tend to benefit they have this global reach and corvette talked about listening even though trade in in the world with China are an issue we actually benefit a little bit from some people moving things around wells Fargo remains a an interesting story in the banking world it was down a little bit this quarter and even though the seems like another bit of a wait and see how Federal Reserve Rate Cuts Will Impact Bank prophets is it too early to tell or are there some warning signs on the horizon as he just mentioned yes so this this is the big macro question what what we keep waiting to see certainly lowered interest rates does hurt bank profitability it means you can't charge as much on the loans your watch people so far it's only impacted them a little bit on the margins they've sort of avoided as well as far ahead a little bit more than others many February cuts they're going to be the banks are not sure really what's going to happen there are kind of puts and takes there you might lose them on lending but there is a huge urging mortgage origination a lot of it being refinancing because people see lower interest rates they wanna cut their mortgage so I think it remains to be seen as probably a good way to talk about the that right now all right Wall Street Journal reporter David Vanoy joining me in our studio in New York with the latest on big bank earnings thank you so much David