JP Morgan Chase which was expected to break even or report a small loss in the fourth quarter said Thursday its profit plunged 76 percent.
The expectation of a quarterly loss of 4.8 billion euro or $6.3 billion means Deutsche Bank will also mark its first full year loss in 50 years.
In the eyes of Jamie Dimon, JP Morgan Chase Chief Executive Officer, the worst of the economic crisis has not come yet, predicting the financial sector will see more problems with consumer loans and credit cards, he said in an interview with the Financial Times.
Germany's biggest bank Deutsche Bank AG reported on Monday it estimates a loss of 4.8 billion euro or $6.4 billion on the fourth quarter on what it called exceptional market conditions which impacted sales and trading businesses.
The company is splitting to ultimately reduce its overall mission to two areas only: wholesale banking for large corporate clients and retail banking, according to the Wall Street Journal
Citigroup Inc and Morgan Stanley may announce a deal this week that could combine their brokerages to create a new company, the latest move in a financial services industry which has begun consolidating businesses wracked by heavy losses tied to mortgages, according to media reports.
Citigroup announced that Robert Rubin has retired as Senior Counselor effective Friday and will finish out his term as a director on the company's board.
Lehman Brothers Holdings Inc. -- currently under bankruptcy court protection -- has reached a deal to sell its private equity unit to spin off into an independent firm, a source closed to the matter informed according to Reuters, Bloomberg and the Wall Street Journal.
US banking giant Citigroup said it had 1.4 billion dollars in direct exposure to Netherlands-based chemical giant LyondellBasell.
Citigroup has reached a deal with key senators that may pave the way for judges alter mortgage loans to help homeowners stay in their homes. Cramdowns' as they are called, are when judges force lenders to modify the original terms of a loan.
Wednesday's opening in Wall Street headed lower after Alcoa Inc. announced it will cut about 13 percent of its workforce.
Investors affected by Bernard Madoff's $50 billion alleged fraud are likely to start recovering their money in the next month if the cash isn't difficult to trace, said the President of investor protection fund, Securities Investor Protection Corp President Stephen Harbeck said in an interview with Bloomberg.
Gold futures gained in New York on Wednesday following weakness in the U.S. dollar and oil prices reached a new record, boosting the appeal of the precious metal as a hedge against inflation.
Gold futures closed down on Monday after oil prices reclined from earlier records levels while the U.S. dollar gained against the euro, eroding the appeal of the precious metal as an alternative investment.
U.S. stocks were mixed on Monday, dragged lower by financial shares on concern there could be more credit losses and while record oil prices topped $143 a barrel.
Gold futures rose above $930 an ounce on Friday to the highest price in a month as crude oil hit a record high and the U.S. dollar continued to weaken, boosting the investment appeal of the precious metal as a hedge against inflation.
Bank of America Corp. said it will complete its purchase of Countrywide Financial Corp by July 1 and then cut 7,500 jobs as part of the combination of the companies.
Gold futures surged the most in two years as weakness in the U.S. dollar boosted the investment appeal for the precious metal, causing prices to lift nearly 4 percent.
U.S. stocks tumbled sharply on Thursday with the Dow dropping to its worst level since September 2006 on a series of downgrades from Goldman Sachs while shares of Citigroup Inc. and General Motors hit its lowest levels in more than nine years.
U.S. stocks rose on Tuesday on speculation that weaker consumer confidence and a record plunge in home prices will ensure the Federal Reserve to maintain interest rates at current levels, while United Parcel Service set new multiyear low.
Gold futures edged lower on Friday but managed to close the week with a gain of almost 4 percent as oil prices continued to soar and weakness in the U.S. dollar boosted the demand for a hedge against inflation.
The U.S. and China agreed to begin negotiations for an investment treaty that would guarantee access for the nations' companies to buy assets in the other country, representatives said at the close of a week-long meeting in Annapolis.
