Out of the gloom, a ray of light. It is being emitted by Bruce Thompson, CFO of Bank of America, who's been speaking at the Morgan Stanley Financials Conference. Following earlier ominous predictions by Goldman banking analysts that revenues could fall 30% in the third quarter of 2012 compared to the first quarter, Thompson said that for the moment at least things aren't too bad.
Volumes are down, said Thompson, but not by as much as last year. Second quarter activity was down on the first quarter, he added, but the second quarter of 2012 was "clearly much better" than Q2 2011. US banks are due to start announcing their second quarter results next month. If Thompson is right, maybe there won't be a rush of third quarter redundancies after all. He may not be right, however.
Separately, the Guardian has unearthed a fat 'sturdy' director-level equities analyst specialising in financial stocks, who says he earned £650k last year and that despite getting up at 5.30am and despite clients having no entertainment budget, he loves what he does.
"My job is a lot like being a journalist, only better. When I hear hacks talk about their frustrations, it's usually they lack resources to go deep, they don't get paid enough, their readership doesn't pay attention. I get to follow seven or eight banks really thoroughly while the 2,000 people or so who get sent my work do read it as they pay tens of thousands of pounds for it."
Jamie Dimon blames the issues at the CIO on the new risk limits, inexperienced traders, and transitioning risk personnel. Also: admits senior management should have taken more notice. (SCRIBD)
A reminder, in past 587 trading days, JPM "made money" on 546, 93.5% of the time. (ZeroHedge)
Hypothetical, illustrative example of the orderly liquidation of JPMorgan Chase. (Alphaville)
Morgan Stanley is maniacally focused on cutting all costs, except compensation. (Reuters)
Christian Meissner thinks Greece WILL leave the euro, and that this will be manageable. (Bloomberg)
Andy Frankenberger, a former trader at Credit Suisse, has won $446k in a poker tournament, plus a gold bracelet. (Financial News)