Analysts: New rules to slash major banks' profits

06/29/2010 | Wall Street Journal, The

Analysts at Barclays Capital and Goldman Sachs estimated that financial regulations resulting from the legislation lawmakers are working on could cut earnings of major banks, such as Bank of America, Citigroup and Morgan Stanley, by as much as 14%. "This bill will likely have a significant negative impact on the banking industry's earnings through fee reductions, higher costs (both regulatory and implementation), and new restrictions, in addition to tying up capital," Jason Goldberg, a Barclays Capital analyst, wrote in a note to clients.

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