The Banking and Strategy Initiative

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Capping off the Bank results season | Advantage Research

Congresistas: ¡Digan NO a Wall Street!

Image by sarihuella via Flickr

Call it a twist in the fate of the exploited, but again the winner in the entire season seems to be Goldman Sachs, despite of course Morgan Stanley yet to report. Wells Fargo seems to have admitted to just lower reserves adding to the bottomline as mid April reports brought back positive signs of more than half a million in Housing starts and sales statistics.

Wells Fargo stayed the course with JPM and BAC posting 60% lower Credit provisions of around $3 bln, profits to the same extent and tad lower revenues as it slips in the mortgages business and is unable to lend afresh

Goldman sachs in the meantime had no problem with dividend, kept a steady ship improving in Q-o-Q comparisons while JP Morgan and BofA relied on year on year comparisons from a different era almost to get through the prying media and the investors. WSJ blogs would have more reactions from analysts developing this theme and Deutsche Bank and the europeans would start report cash heavy numbers as they get rid of the regulatory baggage ( and in the Deutsche Bank case a $5 billion Casino investment in the Cosmopolitan)

The case of the good assets vs bad assets also seems to have wound down completely and Citi still the more complete international franchise than any other with great worldwide results. meanwhile BofA has found another $5blln in PE assets to spin off after a 2010 spin off of Ridgemont. one notable BofA PE deal was HCA worth $31 billion

While US will keep that spring in the step, questions are likely to arise on the capability of BofA and Wells Fargo retail to lead the retail consumption uptick in the domestic economy as the budget hurdles are finally crossed with huge $4T commitments in spending cuts/deficit reduction steps.

In related industries, Blackrock is at the top of the world and Hedgies are counting institutions as is big deal time being stretched out from (y)ear to (y)ear..And USA is the last one to get a ratings warning at AAA- it might just slip to AA+/- if it can’t keep a hold on government expenditure / tax cut jamborees


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