Get ready for earnings mayhem.
The nation's largest banks --
Bank of America
-- are all scheduled to report second-quarter results this week and no one agrees on what to expect.
for Citi's second-quarter loss from 76 cents to 5 cents per share, or the estimates for JPMorgan to produce either a loss of 23 cents or a profit of 27 cents a share.
"Weak and messy" is the forecast from JPMorgan analyst Vivek Juneja. "Pretty weak and dismal" predicts Larry Rosenthal, founder of Financial Planning Services.
I don't blame the analysts, though. All this government bailout business and subsequent shift in the norms will result in a barrage of confusing and incomparable earnings statements that will attempt to show improvement of some kind - any kind.
should keep everyone confused.
Then there are all of the capital increases stemming from the government's stress tests, stock conversions and accounting changes that -- on top of the bailout-related dividends and repayments -- will add to the free for all.
Citi, BofA and
are among those that are still burdened by the Troubled Asset Relief Program.
Others, like JPMorgan,
have repaid the government.
Even for those that have repaid, there is still the issue of all those pesky warrants associated with the preferred shares given to the Treasury in exchange for bailout funds. JPMorgan, Goldman Sachs,
, US Bancorp, BB&T and others are still haggling with the government over the fair value of those securities.
All in all, investors will have a lot of information to sift through and it will be a challenge to compare and contrast the results to see which banks are better off.
The earnings releases will all tout different metrics to put the best foot forward. Don't expect consistency.
It's every bank for itself in this climate - the rules of engagement have changed.
Glenn Hall is the editor of
. Previously, he served as deputy editor and chief innovation officer at
The Orange County Register
and as a news manager at
in Frankfurt, Amsterdam and Washington, D.C. As a reporter, he covered business and financial markets, worked in both print and television in the U.S. and Europe, and conducted in-depth investigative coverage at
in Fort Wayne, Ind. His work also has been published in a variety of newspapers including
The Wall Street Journal
The New York Times
International Herald Tribune
. Hall received a bachelor's degree in journalism and political science from The Ohio State University and a certificate in project and program management from Boston University.