So what do we know about bank earnings so far? We know that Wells Fargo said mortgage originations were strong, we know that Goldman saw big gains from fixed income.
Let's make this simple: which banks have the strongest fixed income & mortgage origination exposure? The answer: Citi, B of A, JP Morgan, Wells Fargo. In other words, the big boys. Which banks have outperformed other financials in the past few weeks? Citi, B of A, JP Morgan, Wells Fargo.
In other words, the Street has already figured this out.
But let's not kid ourselves too much: bank earnings are all but indecipherable these days.
Bank of America analyst Guy Moszkowski, while discussing Citigroup this morning, voiced the frustration of all of us who are trying to understand the earnings of banks: "there are so many special items that there's very little agreement on what to exclude, what to include, and whether there is any glimmer of sustainable earnings power or capital accumulation."