Federal regulators are nearing a decision on aiding troubled lender CIT Group, CNBC’s Maria Bartiromo tells the Fast Money desk, and a resolution over CIT's funding issues is expected either later Wednesday or by Thursday morning.
Shares of CIT were halted late Wednesday pending news. The shares were trading at $1.64 when they were halted at 3:19 pm New York time.
CIT, a lender to thousands of small and mid-sized businesses, is in round- the-clock discussions with all three financial regulators—the Treasury, Federal Reserve and Federal Deposit Insurance Corporation—about how to resolve a severe shortage of cash.
> Click here for the very latest on CIT
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EARNINGS EDGE: JPMORGAN
Shares of JPMorgan closed higher Wednesday as banking analyst Richard Bove said the bank is likely to follow Goldman Sachs in reporting better-than-expected earnings.
JPMorgan, which is scheduled to issue its second-quarter report on Thursday, will be the second major Wall Street bank to post quarterly results, after Goldman Sachs on Tuesday.
Bove, of Rochdale Securities, believes JPMorgan will see ongoing improvement in its capital markets business, thanks to Wall Street's spring rally and the recovering credit markets.
"The strong earnings performance of Goldman Sachs' capital market operations in the second quarter suggests that JPMorgan's second quarter results may also be above expectations," Bove wrote in a note to clients on Wednesday.
Analysts polled by Thomson Reuters, on average, are expecting earnings of 4 cents per share during the quarter.
Bove said the bank is also likely to benefit from solid fixed income, currency and commodities trading. All of these markets have been volatile, and so have seen increased activity, in the wake of the improving sentiment on the economy early in the second quarter.
The bank's "Achilles Heel," Bove said, is its traditional retail banking operations, which are at risk of seeing increased loan losses as consumers struggle to pay off their debt amid the ongoing recession.
What's the bank trade?
If JPMorgan comes out strong I think Bank of America could also go higher, speculates Karen Finerman. But Goldman put up such a strong number the bar is set very high.
Read More:
> JPMorgan shares gain ahead of earnings report
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