More structural than cyclical is S&P's view of weak Wall Street earnings. Return on equity...

|By:, SA News Editor
More structural than cyclical is S&P's view of weak Wall Street earnings. Return on equity at the major investment banks - usually 15% in okay times - was just 7% in 2011. Goldman Sachs - legendary for killing it no matter what - earned just 3.7% ROE vs. 32.7% in 2007. Regulations, higher capital requirements, and toxic attitudes attitudes towards the TBTFs are all weighing.