JPMorgan warning hits the big banks

A check of the global banks finds the group pacing market declines in morning action after Friday night's warning on Q2 trading revenue from JPMorgan (JPM -2.2%).

Nomura's Steven Chubak is first out with lower JPMorgan earnings estimates.

Jim Cramer sums up sentiment: "This has been a house of pain. You can't own these right now. You just can't."

Morgan Stanley (MS -1.9%), Goldman Sachs (GS -1.5%), Citigroup (C -1.2%), and Bank of America (BAC -1%), Deutsche Bank (DB -1.2%). Far less trading dependent than the other Too Big Too Fails is Wells Fargo (WFC -0.2%).

The iShares DJ U.S. Broker-Dealer ETF (IAI -1.2%)

XLF -0.7%, KBE -0.8%


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Comments (16)
  • overunder
    , contributor
    Comments (44) | Send Message
    The question is: Can the government suck all of the big banks dry or will some survive?
    5 May 2014, 10:39 AM Reply Like
  • La Rue
    , contributor
    Comments (900) | Send Message
    Jon Corzine could help the government. Hear he's real good at sucking $ out of banks. Sad times :(
    5 May 2014, 11:08 AM Reply Like
  • al roman
    , contributor
    Comments (18252) | Send Message
    You guys got a hard week ahead of you.
    5 May 2014, 10:41 AM Reply Like
  • S FL Guy 268
    , contributor
    Comments (53) | Send Message
    I'm long on BAC ... Once the Gov stops slapping BAC around it is the strongest bank to invest in.
    5 May 2014, 11:53 AM Reply Like
  • moneuy
    , contributor
    Comments (2) | Send Message
    How come the news media is not telling the people whats going on between the banks and goverment
    5 May 2014, 12:25 PM Reply Like
  • pinset
    , contributor
    Comments (6) | Send Message
    Same reason Obama gets a pass for feeding us
    false information, deliberate misdirection and
    failure to take actions to maintain a strong Military
    for the welfare and safety of the Citizens of the USA.
    6 May 2014, 12:22 AM Reply Like
  • minecanary
    , contributor
    Comments (1353) | Send Message
    Just fining the scumbags is a bigger gift then they deserve. Most should be doing 15 to 20. We're just in the spot in the cycle where the pols pretend to look tough, the banks play contrite, and they both plan how to the fleece the public in the next round. Maybe bonuses will only go up 20 percent this year.
    5 May 2014, 12:35 PM Reply Like
  • Hello Again 83
    , contributor
    Comments (700) | Send Message
    Banks are scheduled to make more money in 2014 than anytime in the history of mankind. So I do not buy the report. We are hanging on to our shares for 5 to 7 years easy. Super Long BAC.
    5 May 2014, 03:09 PM Reply Like
  • Hello Again 83
    , contributor
    Comments (700) | Send Message
    This is what Warren Buffett said about Bank of America this morning. Click link
    5 May 2014, 03:26 PM Reply Like
  • WisPokerGuy
    , contributor
    Comments (1401) | Send Message
    Morgan Stanley reported a GREAT quarter just 3 weeks ago. Nothing management said at the time indicated any trading problems. In fact just the opposite. MS under $30 is a strong buy with possible 20% end of year gain. Increased my position 25% today at $29.90.


    I also like JPM in the low $50's however waiting for the dust to settle a bit. Most price targets (even after being lowered this morning) still have JPM in the mid $60's. Plus a decent 2.7% dividend while you wait.


    Disclosure - long MS and long JPM (as a core portfolio holding)
    5 May 2014, 03:50 PM Reply Like
  • WisPokerGuy
    , contributor
    Comments (1401) | Send Message
    On his 5/5/2014 show tonight, Jim Cramer declared both JPM and BAC sells.


    If anybody EVER needed further evidence that these two banks are good long term bets, that should just about be all the evidence you need. I don't think Jim Cramer has picked a winning stock since he recommended Apple in 2008.
    5 May 2014, 09:41 PM Reply Like
  • Airchan32
    , contributor
    Comments (38) | Send Message
    It's funny that Cramer declared BAC as a sell when, in fact, he's still holding BAC in his trust. See the link:
    6 May 2014, 11:23 PM Reply Like
  • WisPokerGuy
    , contributor
    Comments (1401) | Send Message
    Oh brother... This has what to do with JPM? Next time try
    5 May 2014, 09:17 PM Reply Like
  • Bartender
    , contributor
    Comments (2) | Send Message
    Can someone explain what "pacing market declines" means? I'm fairly new to this.
    6 May 2014, 12:23 AM Reply Like
  • 808Amigo
    , contributor
    Comments (484) | Send Message
    share prices moving similar to overall market - would be my guess
    6 May 2014, 11:06 PM Reply Like
  • EHB1
    , contributor
    Comments (22) | Send Message
    You know, at some point it's cheaper to hire $10 billion worth of lawyers than to keep settling this stuff. The reason these settlements keep coming is it's easy money. You have a few lawyers at Justice and with plaintiffs that make a living by filing claims against the banks. The banks all have the same issues and they all settle. An aggressive defense and delaying with endless motions and appeals has some merit and might be a cheaper way out.
    7 May 2014, 08:08 AM Reply Like
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