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Friday's Headlines: Will recent market gyrations help bank trading profits

As financial markets continue their roller-coaster ride, experts are pondering whether the volatility and increased volume will help or hurt Wall Street trading profits, Bloomberg reports. The news wire cites one analyst who believes that banks can profit if they make the right bets, and another who argues that recent developments could cause "market-making pain" and increase investors' risk aversion.

The Wall Street Journal meanwhile, debates the same question and concludes that such a short run of volatility won't make much of a difference. "The spell of wild stock trading won't be enough to quiet the profit questions dogging Wall Street's biggest firms," the Journal says.

The S&P 500 index shed 17 percent in recent weeks on concerns about the European and US debt crises.

Other News:

Citadel gives up its battle to build investment bank, to close equity research unit. [MarketWatch]

Goldman CEO Blankfein lost $52 million in August, much more than other Wall Street CEOs. [BusinessWeek]

European governments would rescue banks if necessary, but cost could be crippling. [New York Times]

US bank stocks have more room to fall even after recent tumble. [Forbes]

Bank of America CEO says bank strong despite recent stock woes. [Biz Journals]

Denmark government to announce program to prop banking sector. [Wall Street Journal]

John Hancock lifts parent Manulife earnings, but outlook uncertain. [Biz Journals]

PNC plans business overhaul for RBC Bank after acquisition, boosting technology and adding fee products. [American Banker]

South Africa's Standard Bank to refocus energy on Africa, to expand in Nigeria and Angola. [Dow Jones]

Lloyds Banking transferring $1.4 billion debt-backed properties to a Dublin firm to recover value. [Financial Times]

Credit Suisse's DLJ South American Partners to split off alone as Victoria Capital. [Fox Business]

Bank of American CEO meets US officials in effort to calm investors. [Wall Street Journal]

Paris trying hard to lure hedge funds but local interests may intervene. [Financial News]

HSBC brand hurt after announcing branch sales, lay offs. [Forbes]

Paul Allen to start Ascentium Capital, small business lending firm backed by Vulcan. [Biz Journals]

US bank stocks clobbered, but counterparties and clients not jittery like in 2008. [BusinessWeek]

Fund of funds enhancing services, changing strategy to lure very wealthy investors. [DealBook]

AUTHORDalia Fahmy Insider Comment

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