Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 

4-Traders Homepage  >  Equities  >  Nyse  >  Morgan Stanley    MS

Delayed Quote. Delayed  - 09/29 10:02:14 pm
31.04 USD   -2.30%
06:58a MORGAN STANLEY : Naira heads towards N500/USD; Morgan Stanley warns ..
09/29 China Merchants Securities IPO Over Subscribed
09/28 MORGAN STANLEY : Schedules Quarterly Investor Conference Call
SummaryQuotesChartsNewsAnalysisCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsSector news 

J.P. Morgan Leads Bank Shares Lower After $2 Billion Loss Disclosure

share with twitter share with LinkedIn share with facebook
share via e-mail
0
05/11/2012 | 03:23pm CEST

-- Bank shares drop ahead of U.S. market open on J.P. Morgan loss disclosure

-- JPM leads banks lower, falling 8.3%, while others are down by about 2%-4%

-- Most analysts still stand behind bank

 
   By Christian Berthelsen 
   Of  
 

Stocks of the major U.S. banking companies fell sharply in premarket U.S. trading Friday, led lower by J.P. Morgan Chase & Co. after the bank revealed a $2 billion trading loss in a previously little-known corner of the bank's vast operations.

J.P. Morgan shares were down about 8% ahead of the U.S. market open, and stocks of other major banking companies were down by a range of 2% to nearly 4%, exceeding moves lower in the major stock index futures.

Citigroup was off 3.8%, Goldman Sachs was down 2.7%, Bank of America was down 2.5%, Morgan Stanley was 2.1% lower and Wells Fargo was down 1.8%.

J.P. Morgan's loss--detailed in a hastily arranged conference call late Thursday--stemmed from a large hedge position that was essentially bullish on the economy, by selling credit default swaps on an index of corporate debt.

The cost of the swaps began to rise last month, and the bank began to unwind the position at a loss.

The trade was put on by J.P. Morgan's Chief Investment Office, a unit which invests the bank's surplus assets. Such offices are common at big banks, though most say they invest in low-volatility, low-risk vehicles such as Treasuries to protect against interest rate and inflation risk.

Still, J.P. Morgan says it will be profitable in the second quarter despite the loss, after recording $5.2 billion in net income in the first quarter and $19 billion in 2011. The bank has $184 billion in shareholder equity.

Analysts remained behind the bank, however, with many leaving their ratings on J.P. Morgan stock unchanged. Still, many noted the debacle is likely to play in to the hands of regulators and banking industry critics calling for tougher oversight and more limitations on risk, which could impede a source of revenue and profits for the major banks in the future.

"The timing of JPM's announcement is unfortunate given the growing market concerns about risk exposures of all major U.S. banks, and the unfinished nature of the Volcker Rule, and is likely to result in weak performance for all [large bank] stocks in the near term," Wells Fargo said in a note.

Evercore Partners re-affirmed its 'buy' rating on the stock, but added: "Implications could be significant depending on how much such CDS had been helping to bolster results previously, lingering losses, and perhaps most importantly, how regulators view this for JPM and the industry overall given [the] pending Volker rule" that would scale back proprietary trading.

-By Christian Berthelsen, Dow Jones Newswires; 212-416-2381; christian.berthelsen@dowjones.com.

share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on MORGAN STANLEY
06:58a MORGAN STANLEY : Naira heads towards N500/USD; Morgan Stanley warns against cont..
09/29 MORGAN STANLEY : Introduces New Tool Kit to Effectively Integrate Gender Diversi..
09/29 China Merchants Securities IPO Over Subscribed
09/28 MORGAN STANLEY : Schedules Quarterly Investor Conference Call
09/28 Deutsche gets lift from $1.2 billion sale of Abbey Life to UK's Phoenix
09/28 MORGAN STANLEY : rates CVO as Equal-weight
09/28 Ukraine placing U.S. secured $1 bln five-year eurobonds at 2.5%
09/27DJOil Prices Slide as Traders Doubt OPEC Deal
09/27 MORGAN STANLEY : The WSTA Welcomes Joseph Ferlisi, Managing Director, Head of Fi..
09/27 Sadia Halal Plans for Initial Public Offering (IPO)
More news
Sector news : Investment Banking & Brokerage Services - NEC
09/29 TI Fluid Systems looks to raise 600 million euros in London debut
09/29DJOil Prices Hold Gains on OPEC Deal Skepticism
09/28DJSolarCity Names Finance Chief, in Solar Funds Venture
09/28DJE*TRADE FINANCIAL : Nationwide to Acquire Annuities Company Jefferson National
09/28DJNo First-Day Pop for Postal Savings Bank of China
More sector news : Investment Banking & Brokerage Services - NEC
News from SeekingAlpha
09/29 GUNDLACH : 'Stay away' from difficult Deutsche Bank; shares -6.5%
09/29 Stocks add to losses on Deutsche worries
09/28 Walmart's Next Move Against Amazon
09/28 Latest stress test changes bad news for TBTFs, good news for smaller players
09/26 Bank Of America Remains Cheap - A Historic Look At Big Banks
Advertisement
Financials ($)
Sales 2016 33 022 M
EBIT 2016 7 654 M
Net income 2016 4 656 M
Debt 2016 -
Yield 2016 2,26%
P/E ratio 2016 12,96
P/E ratio 2017 10,84
Capi. / Sales 2016 1,84x
Capi. / Sales 2017 1,75x
Capitalization 60 738 M
More Financials
Chart MORGAN STANLEY
Duration : Period :
Morgan Stanley Technical Analysis Chart | MS | US6174464486 | 4-Traders
Full-screen chart
Technical analysis trends MORGAN STANLEY
Short TermMid-TermLong Term
TrendsNeutralBullishNeutral
Technical analysis
Income Statement Evolution
More Financials
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 26
Average target price 33,3 $
Spread / Average Target 4,8%
Consensus details
EPS Revisions
More Estimates Revisions
Managers
NameTitle
James Patrick Gorman Chairman & Chief Executive Officer
Thomas Colm Kelleher President
James A. Rosenthal Chief Operating Officer & Executive Vice President
Paul C. Wirth Director-Finance & Controller
Jonathan Pruzan Chief Financial Officer & Executive Vice President
More about the company
Sector and Competitors
1st jan.Capitalization (M$)
MORGAN STANLEY-2.42%60 738
GOLDMAN SACHS GROUP IN..-11.81%66 273
CHARLES SCHWAB CORP-6.80%41 093
CITIC SECURITIES COMPA..-17.00%28 596
GUOSEN SECURITIES CO L..--.--%19 781
HUATAI SECURITIES CO.,..-9.58%18 086
More Results