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The market chaos is going to have long-term effects on Wall Street banks
The past few weeks have witnessed an insane amount of market volatility. Each of the major US stock indexes finished August down more than 6%, their biggest monthly loss since May 2012. And that turmoil is going to have long-term effects on Wall Street investment banks. That's according to a note from JPMorgan's Kian Abouhossein, who has cut the bank's earnings-per-share estimates for investment banks across the street by 2-3% from 2015 all the way to 2017. He argues in his note that while banks are unlikely to have taken short-term trading losses as a result of the moves, the spikes in volatility of the past two ... (full story)