All eyes on Friday's JPMorgan earnings data
JPMorgan Chase CEO Jamie Dimon had to testify before the Senate Banking Committee last month after the nation's largest bank reported a $2 billion trading loss. (June 13, 2012) Credit: AP
It's been a scandal-filled few months for banks.
All this happened amid signs of a slowdown in the U.S. and Chinese economies and a debt crisis in Europe, which won't help the banks as they report their financial results for April through June.
All eyes will be on JPMorgan on Friday, when it becomes the first bank to report. The trading loss rattled the company's stock price and hurt both its reputation and that of chief executive Jamie Dimon, who is expected to provide an update.
Analysts aren't expected to give the company a pass. "We expect a detailed account of what went wrong, what has changed and what is remaining," says Jason Goldberg, a bank analyst at Barclays Capital, a global investment bank.
JPMorgan's stock has fallen from $40.74 before disclosing the trading loss May 10 to $34.04 on Thursday.
Other bank stocks have also been dragged down because of uncertainty in Europe, the recession that has gripped some countries there and economic slowdowns in China and India.
Those worries have led to fewer corporate deals, which provide much-needed fees for the big banks.
Out East Show: LI Aquarium, Patty's Berries and Bunches, Palmer Vineyards NewsdayTV's Doug Geed shows us some great spots 'Out East' to visit this summer.
Out East Show: LI Aquarium, Patty's Berries and Bunches, Palmer Vineyards NewsdayTV's Doug Geed shows us some great spots 'Out East' to visit this summer.
