If the broader market continues to take its cue from the financials, investors have a good deal more information by which to judge the health of the banking system after Citigroup, JPMorgan Chase and Goldman Sachs reported results this week and Wells Fargo gave a details-light pre-announcement last week.
Or do they?
Even with some major financials having reported and Bank of America , Morgan Stanley and Wells Fargo due with complete results next week, the prospects for the banking industry remain murky.
Yes, Goldman earned plenty of money, succeeded in raising $5 billion from an issue of common equity. The bank also wants to pay back its TARP money. But as good as its reults were, Goldman benefited by changing to a calendar year from a fiscal year—isolating the losses it took in December to a quarter made up of only one month.
JPMorgan added $4.2 billion to its loan loss reserves and still managed to earn more than $2 billion in the quarter. But the always feisty Jamie Dimon was far from ready to declare the crisis over.