RobertB
September 7th, 2007, 07:41 PM
Investment Bank Results Eyed by Wall St.
By JOE BEL BRUNO
The Associated Press
Friday, September 7, 2007; 5:17 PM
NEW YORK -- Wall Street analysts have made some last-minute adjustments to their projections for how U.S. investment banks will fare during the third quarter, and the prognosis isn't all that good.
This past week, Banc of America Securities, Citigroup, and Sanford C. Bernstein & Co. all trimmed earnings estimates for investment banks with the most exposure to the debt market. The global credit turmoil of the past month has inhibited the companies' ability to underwrite bond offerings, and distressed subprime debt remains a worry............"Right now, we're in a transparency environment ... open the cupboards and let's see what the problem is."
Indeed, there has been a palpable worry on Wall Street that investment banks are carrying significant losses on their books and now must begin to disclose them. Subprime loans that were merely troubled in previous quarters might need to finally be written off.
http://www.washingtonpost.com/wp-dyn/content/article/2007/09/07/AR2007090702019.html
By JOE BEL BRUNO
The Associated Press
Friday, September 7, 2007; 5:17 PM
NEW YORK -- Wall Street analysts have made some last-minute adjustments to their projections for how U.S. investment banks will fare during the third quarter, and the prognosis isn't all that good.
This past week, Banc of America Securities, Citigroup, and Sanford C. Bernstein & Co. all trimmed earnings estimates for investment banks with the most exposure to the debt market. The global credit turmoil of the past month has inhibited the companies' ability to underwrite bond offerings, and distressed subprime debt remains a worry............"Right now, we're in a transparency environment ... open the cupboards and let's see what the problem is."
Indeed, there has been a palpable worry on Wall Street that investment banks are carrying significant losses on their books and now must begin to disclose them. Subprime loans that were merely troubled in previous quarters might need to finally be written off.
http://www.washingtonpost.com/wp-dyn/content/article/2007/09/07/AR2007090702019.html