This Day On The Street
Continue to site
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

Bank Job Cut Stock Pops Rarely Pay Off: Street Whispers

That will be challenging, however, since analysts can't seem to agree on who has announced a restructuring and who hasn't. Remember that Soc Gen analyst Hoffmann-Becking loves Deutsche Bank's restructuring, while JPMorgan's Abouhossein doesn't mention it. And while JPMorgan's Abouhossein sees potential for Credit Suisse and Morgan Stanley to make further commitments to restructure, Bernstein's analysts put those banks in the "already announced" group.

"Already Credit Suisse, UBS, RBS, Goldman Sachs and Morgan Stanley have established expense initiatives which directly or indirectly cut back staff expenses in trading, and nearly every major capital markets firm has announced a plan to mitigate growth in risk-weighted assets," states the Bernstein report.

Most important, ultimately, will not be which bank says it is restructuring, but which actually pulls it off. A former C-suite executive at one of the above-mentioned banks recently told me winding down fixed income positions is far easier said than done. It may take years to wind down certain positions--indeed, look at Citigroup's Citi Holdings unit--and it is difficult for companies to resist the temptation to make use of the trading expertise they have on hand for the wind down to make new bets in the meantime.

All this talk of restructuring, in other words, may amount to relatively little in the end.

-- 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.
3 of 3

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
Only $9.95
14-Days Free
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
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
BAC $14.56 0.00%
C $46.28 0.00%
JPM $63.20 0.00%
MS $27.06 0.00%
UBS $17.27 0.00%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs