Investment banks trust in the best
but to investors open one losses
Yesterday Merrill Lynch, Wells Fargo, JP Morgan Chase have published reports on the financial activity for the first quarter 2008. As a whole investors have apprehended results of their work positively, only results Merrill Lynch nevertheless have brought some disappointment.
the third investment company Merrill Lynch on capitalisation informs on losses the third quarter successively. In the first quarter 2008 losses have made 1,96 mlrd dollars (for the similar period of last year the bank has earned 2,16 mlrd dollars) . Earlier experts predicted a little smaller losses, at level 1,72 mlrd dollars After an exit of the report of action Merrill Lynch at the auctions in New York have fallen in price on 3,7 %. For last year its capitalisation has decreased twice. In the second half of the year 2007 on losses have been written off 20 mlrd dollars General director Merrill Lynch John Tejn considers that ahead of it wait “ even more difficult “ months.
the third on size of actives the American bank JP Morgan Chase on Wednesday has declared that its profit for the first quarter has decreased on 50 %. The decrease reason names write-offs on 5,1 mlrd dollars of mortgage securities. The bank net profit has decreased to 2,37 mlrd dollars that corresponds to expectations of market analysts.
but the largest bank Wells Fargo at the western coast USA has surprised experts, having informed on smaller falling of profit, than it was expected. The bank net profit in the first quarter has decreased on 11 %, to 2 mlrd dollars (2,24 mlrd dollars in 2007). Counting on the action it is necessary on 60 cents though the market expected the income only on 57 cents on each paper of bank. Reduction of prices on habitation in California became a pessimism basis, however Wells Fargo nevertheless it was possible to reduce losses on housing actives. Bank management could keep profitableness, though its competitors Wachovia Corp. And Washington Mutual Inc. From - for recession in the housing market in the western part of the USA have informed on losses.
“ reports JP Morgan and Wells Fargo have justified expectations of investors, - has told daily operating director Eastern Investment Advisors Rose Grant. - the gain and profit JP Morgan have decreased, but their volume has all the same pleased investors. Merrill Lynch expectations has not justified, but it is one of those cases when the situation could be much worse “. Today the report of bank group Citigroup Inc largest in the USA also is expected. Under forecasts of experts, in first quarter Citigroup can inform on losses for the sum 4,8 mlrd dollars
In investment banks hope that the peak of financial crisis is passed. So, according to Dzhejmi Dajmona heading JP Morgan Chase, there are 70-80 % of confidence that the main financial difficulties almost passed. Richard Fald supervising Lehman Brothers Holdings Inc., declared to shareholders that all “ the worst already behind “. Its colleague Lloyd Blenkfajn from Goldman Sachs Group Inc. Convinces investors, as if crisis “ more close by the end, than to the beginning “. Head Morgan Stanley John Mek promises that the crisis phenomena will last “ still to steam of quarters “ it is no more. In the meantime the global volume of write-offs by banks and investment firms has already reached 255 mlrd dollars