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Oil concerns weigh on banks

Tuesday, January 19, 2016 - 01:01

Despite better-than-expected results at Morgan Stanley and Bank of America, there are still big headwinds facing the sector. Bobbi Rebell reports.

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The latest banks to report results are cutting costs and working to become more efficient. The moves helped Bank of America report higher earnings, and revenues but the stock fell to a 52-week low Morgan Stanley's stock fared better though it dipped into the red, despite reporting a profit compared to a year ago loss. The firm is slashing a quarter of its fixed income staff, and planning to cut costs another billion dollars in 2016. Among the challenges banks face are concerns about China, oil prices, and weak IPO activity. RegentAtlantic Chief Investment Officer Chris Cordaro does see upside coming from the Fed: (SOUNDBITE) (ENGLISH) CHRIS CORDARO, CIO, REGENTATLANTIC SAYING: "We're seeing a lot of surprises to the upside on earnings where they've done a great job cutting their costs. Now, going forward, as rates start to raise, their spread is going to keep increasing, their profit is really going to start growing. And, if they can keep their costs down, we should see a really good raise in bank stocks going forward. " The last of the big banks to report, Goldman Sachs releases results Wednesday.

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Oil concerns weigh on banks

Tuesday, January 19, 2016 - 01:01