f*****x
发帖数: 675 | 1 http://blogs.wsj.com/deals/2010/07/16/meet-the-new-bofa-the-bearer-of-bad-news/?mod=yahoo_hs
Former Bank of America CEO Ken Lewis was known to avoid the release bad news.
Successor Brian Moynihan seems to have no such problem.
Moynihan today became one of the few financial executives to put a price tag
on the recently passed financial overhaul bill–and it wasn’t pretty.
Moynihan said it could cost the nation’s largest bank by assets $10 billion
, mostly in goodwill charges. But the cost also included a $2.3 billion hit
from new restrictions on the fees that credit-card companies can charge
merchants. Many analysts said they were caught off guard by that credit-card
estimate, forcing them to reassess their models on the impact of the law on
the nation’s banks.
Moynihan’s comments stand out because J.P. Morgan CEO Jamie Dimon wasn’t
willing to go there, even when pressed by analysts. Citigroup also was
circumspect.
BofA paid a heavy price for Moynihan’s candor, as did other credit-card
issuers. BofA’s shares plummeted 9% , making its the steepest of the DJIA
component decliners on a day when the average shed 250 points. American
Express dropped 5%, and J.P. Morgan was down 4%.
Still, in the long run, it is hard to argue that such candor isn’t a good
thing.
It wasn’t too long ago that many investors felt burned by Lewis and other
BofA brass who opted not to disclose the steep and unexpected losses at
Merrill Lynch shortly before they voted to approve BofA’s acquisition of
the bruised Wall Street brokerage.
Those Merrill losses resulted in taxpayer having to shell out billions of
dollars in additional rescue money to BofA, and Lewis’ failure to disclose
the losses resulted in $150 million SEC fine from the SEC. More importantly,
it created a credibility issue that has dogged the North Carolina bank.
To be sure, Moynihan had a rough quarter. Results in BofA’s investment-
banking unit, which Moynihan used to run, badly lagged behind rival J.P.
Morgan’s, a possible signal that something is troubled internally, not just
in the capital markets broadly.
But at least this quarter, Moynihan showed investors he is willing to
deliver tough-to-swallow numbers, even if others aren’t. Credibility is
built one step at a time. | f*****x
发帖数: 675 | 2 http://blogs.wsj.com/deals/2010/07/16/bofa-earnings-three-things-investors-hate/
BofA Earnings: Three Things Investors Hate
Things were looking up for the banking industry after J.P. Morgan Chase blew
through earnings expectations on Thursday.
Bloomberg News
This morning, Bank of America, the nation’s largest bank by assets, has
damped that enthusiasm with less-than- stellar results. It doesn’t help
that the stock market is reeling from more bad economic data (low consumer
sentiment), but BofA mostly has its second-quarter earnings to blame for the
7% decline in its shares. Citigroup, which also reported results this
morning, has fared slightly better, with shares down 4%.
Here are three things that disappointed investors:
Credit Losses: CEO Brian Moynihan said credit losses slowed more than he
expected, but they didn’t’ match J.P. Morgan’s improvements. BofA’s
reserves for credit losses fell 15% from the first quarter; J.P. Morgan’s
dropped 52%. J.P. Morgan’s results were interpreted as a positive omen for
the industry, but now it looks like the company is an outlier: “BAC’s
result is much closer to what we are looking for, for the entire banking
industry…. and indicates to us that JPM’s dramatic improvement in credit
metrics during the quarter may reflect a more aggressively conservative loss
reserving and classification process at JPM in prior quarters,’’ writes
trading firm Miller Tabak & Co analyst Thomas Mitchell.
Trading and investment banking: BofA’s capital revenue of $4.5 billion fell
46% from the first quarter, while J.P. Morgan’s declined 24%. The biggest
decline at BofA was a 55% slide in trading revenue ; J.P. Morgan was down 34
%. There were a few bright spots at BofA, like the 7% increase in equity
underwriting fees, beating J.P. Morgan’s 14% decline. While J.P. Morgan is
widely recognized for having a stronger investment bank, BofA’s patchy
results make it more difficult to forecast results at Goldman Sachs Group
and Morgan Stanley.
Financial Regulation: BofA said the new regulatory overhaul could cost the
bank $2.3 billion, largely because of new rules limiting the amount of fees
that credit-card companies can charge merchants–a steeper estimate than
some analysts expected. As painful as it may be, BofA should get some credit
for at least offering up an estimated cost. J.P. Morgan refused to estimate
any costs of the financial overhaul.
* Brian Moynihan
news.
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billion
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【在 f*****x 的大作中提到】
: http://blogs.wsj.com/deals/2010/07/16/meet-the-new-bofa-the-bearer-of-bad-news/?mod=yahoo_hs
: Former Bank of America CEO Ken Lewis was known to avoid the release bad news.
: Successor Brian Moynihan seems to have no such problem.
: Moynihan today became one of the few financial executives to put a price tag
: on the recently passed financial overhaul bill–and it wasn’t pretty.
: Moynihan said it could cost the nation’s largest bank by assets $10 billion
: , mostly in goodwill charges. But the cost also included a $2.3 billion hit
: from new restrictions on the fees that credit-card companies can charge
: merchants. Many analysts said they were caught off guard by that credit-card
: estimate, forcing them to reassess their models on the impact of the law on
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