Still, Wall Street isn’t enjoying its good fortune.
Those billions of dollars in profits aren’t enough,
according to interviews with more than a dozen bank executives and analysts,
Bloomberg reports. The lowest leverage in a decade, return on equity at a third
of 2006 levels, higher capital requirements, shares trading below book value,
declining bonuses, job cuts, the European sovereign-debt crisis and a backlash
against bankers have damped the joys of profit, they said.
Wells Fargo and JPMorgan both broke profit records in 2011
and are expected to do so again next year, according to analysts’ estimates
compiled by Bloomberg.
“While there are things to celebrate for the senior
professionals in these institutions, sadly I don’t think they do much
celebrating,” Ralph Schlosstein, CEO of New York-based boutique investment bank
Evercore Partners Inc., said of the biggest financial firms. “The challenge
they face is how to adjust to this new capital regime, and the new regulatory
regime, and to earn an adequate return on equity. None of them have yet broken
the code…..”
Read all about the big pity party at http://www.bloomberg.com/news/2012-10-03/no-joy-on-wall-street-as-biggest-banks-earn-63-billion.html
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