Investment Banking Results Look Strong
Wall Street investment banks are expected to shrug off market volatility to report the second most profitable quarter in their history in the next few weeks.
The Financial Times says that in spite of swings in equity, commodity and currency markets, analysts have been raising their earnings forecasts for Goldman Sachs, Morgan Stanley, Lehman Brothers and Bear Stearns.
The forecasts suggest that operating conditions for investment banks remain extremely strong. According to Thomson Financial, average earnings forecasts for the four banks reporting results later this month have increased since the correction.