Analysts have been slashing earnings estimates for big Wall Street banks recently, particularly for Goldman Sachs, as unpredictable trading markets and weak merger and underwriting volumes hurt the sector's profit potential, CNBC reports
Third quarter average profit estimates for Goldman Sachs [GS 102.92 0.67 (+0.66%) ] have fallen 18 percent over the last month to $2.28 per share, according to Thomson Reuters I/B/E/S.
The average estimate for Bank of America has fallen 9 percent, and the average forecast for Morgan Stanley has fallen 4 percent. Estimates for JPMorgan Chase and Citigroup have barely budged.
Goldman has fallen particularly hard because it has a greater dependence on traditional investment banking businesses like buying and selling securities, underwriting stock and bond offerings, and advising on mergers. The largest U.S. investment bank has derived 36 percent of its revenue from the once-lucrative business of fixed income, currency and commodities trading since the start of 2006...
Find out more at http://www.cnbc.com/id/44497057
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