Thursday's Headlines: Wall Street Q2 forecasts cut due to weak trading
The earnings forecast for Wall Street's biggest firms is looking dire. Analysts are slashing their second quarter projections for Goldman Sachs, Morgan Stanley and other firms, citing revenue declines of a third or more in bond, currency and commodity trading, Reuters reports.
"Slow economic growth, skittish trading clients and regulatory worries that just won't go away -- the second quarter has been a punishing one for Wall Street's top investment banks and their shareholders," the article says.
Goldman Sachs is set to release interim results on July 19, and Morgan Stanley numbers are scheduled for later that week. That said, investment banking activity has showed some strength, with a stream of initial public offerings boosting fee income. Mergers and acquisitions also showed an uptick in the second quarter.
Fletcher Asset Management's "unorthodox" practices scrutinized following withdrawal delays. [Wall Street Journal]
Citigroup may trim sale of OneMain consumer lending business by $4 billion.
Blackstone Group's new buyout fund now even bigger than original $15 billion.
J.P. Morgan, Bank of America nearing settlement with states over foreclosures.
UBS hires Lazard's defense banker as it builds up industrial banking unit. [Reuters]
J.P. Morgan Asset Management to replace Columbia as manager of New York's $1.9 billion 529 plans. [Investment News]
Dymon Asia Capital, with capital from Tudor Investment, doubles assets under management. [BusinessWeek]
Deutsche Bank considering selling BHF to Kleinwort Benson. [New York Times]
Wells Fargo buys Castle Pines Capital parent. [Biz Journals]