According to gurus at Reuters 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.
With revenue from trading bonds, currencies and commodities set to have shrunk by a third or more from the first three months of the year, analysts have rushed to downgrade their second-quarter forecasts for big broker/dealer firms such as Goldman Sachs and Morgan Stanley.
Of 22 analysts providing quarterly coverage for Goldman Sachs, 15 have slashed their earnings per share forecasts since the beginning of June, some by as much as half, according to Thomson Reuters I/B/E/S. Over the same time, half of the 24 analysts covering Morgan Stanley have cut their EPS forecasts.
Average expectations for Goldman's EPS are $2.89 for the quarter. That's below the $4.38 the bank earned in the prior quarter,….
Read the rest at http://www.reuters.com/article/2011/07/06/us-wallstreet-preview-idUSTRE7655NR20110706
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