Thursday's decision by the 2nd U.S. Circuit Court of Appeals in New York could subject banks to a wider array of claims by mortgage securities investors, by letting them sue over securities in which they did not specifically invest themselves.
Nomura CEO Kenichi Watanabe has resigned in the wake of an insider trading scandal that has tarnished the reputation of Japan Inc. and its biggest investment bank.
JPMorgan Chase reported a second-quarter profit of $5.4 billion, or $1.27 per share this morning, up from $4.8 billion, or $1.09 per share a year ago. Digging into the earnings supplemental, we can see how -- as in previous quarters -- JPMorgan's investment bank carried the company's overall results.
Morgan Stanley said it is divesting its 6.7% stake in investment manager Invesco. The investment bank will sell the 30.9 million shares it received as part of the sale of its Van Kampen mutual fund portfolio to Invesco, a stake worth nearly $717 million at Tuesday's closing price of $23.20.
Goldman Sachs is expected to report a sharp drop in third-quarter earnings early Tuesday, due to a decline in trading activity in a market that's been light on volume for months. Goldman is forecast to report adjusted earnings of $2.28 a share.
The Federal Reserve Board on Tuesday cleared the way for China Investment Corp., the sovereign wealth fund of the Chinese government, to acquire up to 10% of the voting shares of Morgan Stanley.
Morgan Stanley's second-quarter earnings easily topped Wall Street's expectations as the investment bank swung to a profit from a year-ago loss on sharply higher revenue. Adjusted earnings were 80 cents per share, versus the 46-cent estimate.
Bank of America and Well Fargo are expected to post losses while Morgan Stanley is seen reporting a profit on Wednesday. Less certain is what the newly minted CEOs at BofA and Morgan Stanley are going to tell investors about vision and strategy.
