Investment Bank Strength Won't Last: Analyst:
NEW YORK (TheStreet) -- U.S. securities giants Goldman Sachs, JPMorgan Chase, Morgan Stanley, Bank of America and Citigroup are expected to have a strong first quarter, but that strength is likely to prove short lived, according to a research report Friday from Atlantic Equities analyst Richard Staite.
"We do not see this as a major turnaround," for bank fixed income currencies and commodities (FICC) divisions, Staite writes. That is because first quarter numbers almost always look good when compared to the fourth quarter, and this year's first quarter is likely to be weaker than last year.
Staite is particularly bearish on Morgan Stanley, which he believes "will remain at a competitive disadvantage given a lack of scale in FICC and higher funding costs."
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NEW YORK (TheStreet) -- U.S. securities giants Goldman Sachs, JPMorgan Chase, Morgan Stanley, Bank of America and Citigroup are expected to have a strong first quarter, but that strength is likely to prove short lived, according to a research report Friday from Atlantic Equities analyst Richard Staite.
"We do not see this as a major turnaround," for bank fixed income currencies and commodities (FICC) divisions, Staite writes. That is because first quarter numbers almost always look good when compared to the fourth quarter, and this year's first quarter is likely to be weaker than last year.
Staite is particularly bearish on Morgan Stanley, which he believes "will remain at a competitive disadvantage given a lack of scale in FICC and higher funding costs."
...
Click to view a price quote on GS.
Click to research the Financial Services industry.
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