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Goldman reports its bottom line; GOP hopes to bring back Glass-Steagall


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Goldman reports its bottom line; GOP hopes to bring back Glass-Steagall

Among thosereporting earnings today areGoldman Sachs Group Inc.,Regions Financial Corp.,Comerica Inc. and

Regionsreported second-quarter net income available to common shareholders of$259 million, or 20 centsper share, compared to $269 million, or 20 cents per share, for the same periodin 2015.

Synovus postednet income available to common shareholders of , or 46 cents per share,compared with $53.2 million, or 40 cents per share, a year ago.

Yesterday's spotlightwas on Bank of America Corp.and its $53 billionannualized expense target. On its overall results, the Charlotte Business Journal quotes Nancy Bush as saying, "It isthe least complicated, most straightforward quarter we've seen from themprobably since the crisis. … Allof the sudden it's a real company again."

Meanwhile, theGOP has released itsplatform, and itturns out Donald Trump has somethingin common with Bernie Sanders and Elizabeth Warren — nostalgia forGlass-Steagall. The document calls for its reinstatement and criticizes notonly Dodd-Frank — "the Democrats' legislative Godzilla" — but alsothe "rogue agency" that is the CFPB and the "corrupt businessmodel" of Fannie Maeand Freddie Mac.

On thepossible return of Glass-Steagall, Zero Hedge cautions: "Before anyone getstheir hopes up, recall that a party platform is not binding but is thought toreflect thevalues of the party … until the values change as a result of Wall Street 'incentives.'"

Also in the banking scene:

The IMF'sChristine Lagarde gave a speech on correspondentbanking and how global banks' de-risking is further marginalizing smallcountries. Lagarde said talks with regulators "revealed that banksupervisors have not asked financial institutions to terminate specificrelationships or business lines. Nor did regulators feel that there wereexcessive demands on banks to 'know your customers.'" In addition, fintechfirms may take banks' place in those economies — a development that "mayeven make it more difficult for banks to generate legitimate business."

Jamie Dimonwas fairly vocal against Brexit, and it turns out he had ordered a 's team toanalyze the logistics of it way back in2011. Sources for The Wall StreetJournal say U.K. tax changes had prompted Dimon to consider relocations atthe time — but that the cost saves turned out not to be worth the move.

Activist investor Joseph Stilwell has asked to put itself up forsale. To that, theLacey, Wash.-based bank's CEO, Jerald Shaw, responded: "If I was to pointto one issue that seems consistentlyoverlooked, it is that Anchor was not allowed to put any significantRecognition Program in place at the IPO, [which was] a large drag on currentearnings. Another issue is the residual $2.4 million deferred tax asset that,as I understand accounting guidance, will be lost in any likely sale." ThePuget Sound Business Journal reportsShaw added, "I believe that many of the risks have been cleansed from ourbalance sheet — again at significant expense."

And Chairman,President and CEO Michael Pricewill retire, effective Jan. 1, 2017. Robert Kaminski Jr. succeeds him aspresident and CEO that same day.

It's a merger of credit unionsin Washington:Olympia-based Tulip CooperativeCredit Union ($2.6 million) will be absorbed by Lakewood-basedHarborstone Credit Union($1.2 billion).

And in broker/dealer news,BGC Partners Inc. isacquiring thebusinesses of Sunrise Brokers Group, which has entities in the U.K., Hong Kongand the U.S.

In other parts of the world

Asia-Pacific:Bank of East Asia to opposeElliott suit; MAS probes banks over 1MDB

Europe:ECB not expected to ease monetarypolicy; Turkey placed on review for downgrade

Middle East& Africa: Emirates NBD, AlRajhi Bank Q2 profits rise YOY; Morocco seeks return to African Union

The day ahead

Earlymorning futures indicators pointed to a lower opening for the U.S. market.

In Asia, theHang Seng dropped 0.60% to 21,673.20, while the Nikkei 225 was up 1.37% to16,723.31.

In Europe, asof midday, the FTSE 100 was down 0.42% to 6,667.33, and the Euronext 100dropped 0.84% to 856.49.

On the macro front

Thehousing starts report and Redbook are due out today.

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