This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

Big U.S. Bank Estimates Slashed

NEW YORK ( TheStreet) -- Bank of America (BAC - Get Report), Citigroup (C - Get Report), JPMorgan Chase (JPM - Get Report), Morgan Stanley (MS - Get Report) and Goldman Sachs (GS - Get Report) all saw reduced estimates from analysts on Monday, much of it due to expectations of tougher capital rules from global regulators.

Morgan Stanley analysts lowered their Bank of America price target to $20 from $21, while also dropping their price target on JPMorgan to $60 from $61 and on Citigroup to $58 from $60.

The analysts wrote that they were lowering their expectations on share buybacks due to their assumption that capital requirements would be higher than previously expected for these institutions, due to their role as global systemically important financial institutions (G-SIFIs).

Morgan Stanley analysts expect a 2.5% capital surcharge for Citigroup, JPMorgan and Bank of America and a 2% buffer for Goldman Sachs.

Citigroup analysts appear to have identical expectations, citing a June 16 Financial Times report that also put Morgan Stanley in the 2% group with Goldman. The report cited anonymous sources who had been briefed on global regulators' discussions. A report on Monday from Citigroup argues these new details are "better than feared," though the analysts note nothing is final.

Citigroup dropped estimates on Bank of America and JPMorgan, though they argue the banks may still beat consensus estimates. They reduced estimates on Goldman and Morgan Stanley also, citing a weak trading environment, and a reduced outlook on fixed income trading for the next two to three years.

Citigroup writes that U.S. Bancorp (USB - Get Report) is in a "sweet spot since it is large enough to benefit from scale, but also does not get hit with a large SIFI buffer."

-- Written by Dan Freed in New York.

Disclosure: TheStreet's editorial policy prohibits staff editors, reporters and analysts from holding positions in any individual stocks.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
BAC $15.39 -0.84%
C $51.52 -0.23%
GS $187.97 -1.60%
JPM $60.58 -0.62%
MS $35.69 -1.71%


DOW 17,776.12 -200.19 -1.11%
S&P 500 2,067.89 -18.35 -0.88%
NASDAQ 4,900.8850 -46.5560 -0.94%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs