How well do you know your earnings reports? Most of the Wall Street giants released fourth quarter results this week, including Bank of America, BlackRock, Citigroup, Goldman Sachs, JPMorgan Chase, Morgan Stanley and Wells Fargo. Match the financial company with the quote about its latest earnings report. Answers below.
- “Importantly, we are continuing to address many of the legal issues from the financial crisis,†the chief executive said.
- “Telling the employees that the comp ratio is permanently down is a bit demoralizing,†said Brad Hintz, an analyst with Sanford Bernstein.
- The chief executive’s “star is still high,†said Mike Mayo, a CLSA bank analyst. “But there is no blind faith among bank investors.â€
- “We saw growth across all of our businesses,†the chief executive said in a statement.
- “They are not out there trying to be a broad-based mortgage banker,†said Moshe Orenbuch, a banking analyst at Credit Suisse. “They are trying to cater to their upscale customers.â€
- “It’s a very small market,†the chief financial officer said in a conference call. “One we haven’t seen the likes of since the year 2000.â€
- “I’ve never met a customer yet who said, ‘I want to bank with you because you’re so big I can just be a number,’†the chief executive said.
A look back on our reporting of the past week’s highs and lows in finance.
FRIDAY, JAN. 17
Morgan Stanley’s Earnings Fall for Quarter | The Wall Street firm’s results were dragged down by $1.2 billion in legal expenses. DealBook »
THURSDAY, JAN. 16
Judge Disallows Plan by Detroit to Pay Off Banks | In a decision that surprised many, a bankruptcy judge said it was “reasonably likely†that Detroit could free itself of costly swap contracts if it sued the two banks holding them. DealBook »
News Analysis: Banks Keep Litigation Reserves a Secret | Some investors are upset that banks will not divulge the amount of money set aside, but some banks say they don’t want regulators to know the number lest the authorities increase settlement totals. DealBook »
Wary Goldman Reduces Pay Ratio, Even as Profit Rises | While the bank reported an 8 percent increase in annual profit, to $8.04 billion, it tightened its belt as net revenue in its fixed-income, currency and commodities unit dropped sharply. DealBook »
For Goldman in Europe, a 3rd Way to Get Paid | To skirt caps placed on bonuses in Europe, the company will pay some employees a salary, a bonus and what it calls “role-based pay.†DealBook »
Citigroup’s Earnings Jump 21%, but Still Disappoint Analysts | Despite a leap in earnings, analysts instead focused on mixed results in the bank’s trading business and a slender 1 percent rise in overall revenue. DealBook »
Earnings Soar Beyond Forecast at BlackRock | The money manager reported that fourth-quarter profit rose to $841 million, from $690 million in the same period a year ago, helped by the popularity of its exchange-traded funds. DealBook »
WEDNESDAY, JAN. 15
After Crisis, Iceland Keeps Tight Grip on Banks | Iceland is a living experiment in what can happen when a country forces its financial firms to go under, rather than bailing them out. DealBook »
Bank of America’s Profit Exceeds Estimates | The big bank, which has been trying for five years to recover from the financial crisis, saw its fourth-quarter revenue and net income surge. DealBook »
Ex-SAC Trader’s Knowledge a Surprise, Doctor Testifies | On the witness stand for a second day on Wednesday, Dr. Joel S. Ross told the jury that a former SAC Capital Advisors hedge fund manager, Mathew Martoma, knew the specific results of a clinical drug trial before they were publicly known. DealBook »
TUESDAY, JAN. 14
As Refinancing Wanes, Banks Remain Wary of New Loans | Many potential borrowers are shut out of the mortgage market, despite evidence in earnings reports that banks are strong enough to provide them with credit. DealBook »
Testifying in SAC Case, Doctor Admits Sharing Data | Dr. Joel S. Ross said he shared confidential information with Mathew Martoma on more than one occasion. DealBook »
Europe Reaches Agreement on Trading of Derivatives | The regulations will limit attempts by speculators to corner the market in raw materials like corn or grain. DealBook »
Regulators Ease Volcker Rule Provision on Smaller Banks | The revision would permit banks to continue to hold on to a special type of collateralized debt obligation. DealBook »
Deal Professor: Nader, an Adversary of Capitalism, Now Fights as an Investor | The consumer advocate Ralph Nader has taken on a new fight: shareholder rights, which he sees as a natural extension of his work, writes Steven M. Davidoff. DealBook »
MONDAY, JAN. 13
Secretive Apple Squirms in Gaze of U.S. Monitor | Apple is campaigning aggressively against a court-appointed inspector, saying he is intruding on its operations. DealBook »
DealBook Column: The Man Behind a Global Behemoth’s Eventual I.P.O. | Joe Tsai holds the keys to what will most likely be the largest initial public offering of this generation â€" Alibaba, the Chinese e-commerce giant, writes Andrew Ross Sorkin. DealBook »
My Old Osaka Home: Suntory of Japan to Buy the Maker of Jim Beam Bourbon | Few spirits are as American as bourbon. But the maker of some of whiskey’s most iconic brands, including Jim Beam and Maker’s Mark, will soon belong to an acquisitive Japanese beverage maker. DealBook »
Big Offer Unsettles the Cable Industry | Charter Communications offered $37.8 billion for Time Warner Cable, the nation’s No. 2 cable operator. DealBook »
Europeans Struggle to Set Derivatives Rules | The European Union plans a last-ditch effort to reach agreement on one of the biggest issues highlighted by the financial crisis: how to rein in trading of derivatives and other complex instruments. DealBook »
Stung by Scandal, Giant Pension Fund Tries to Make It Right | Réal Desrochers, head of private equity investments at the California Public Employees’ Retirement System, hopes to improve the fund’s performance, and reputation. DealBook »
WEEK IN VERSE
Are bank earnings down because of the Volcker Rule, legal settlements or declines in fixed income and mergers? Perhaps there is somewhere else to look.
‘Blame It’ | “Blame it on the vodka. Blame it on the henny,†advised Jamie Foxx and T-Pain. YouTube »
‘Blame Canada’ | Robin Williams at the 2000 Academy Awards. YouTube »
‘Blame It on the Rain’ | “Whatever you do, don’t put the blame on you,†Milli Vanilli famously lip-synched. YouTube »
‘Blame It on the Boogie’ | The Jackson 5 knew who was to blame. YouTube »
ANSWERS
1. Morgan Stanley; 2. Goldman Sachs; 3. Citigroup; 4. BlackRock; 5. Bank of America; 6. JPMorgan Chase; 7. Wells Fargo.
