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Industry Report Card: Fundamental Issues Weigh On Global Investment Banks And Brokers; Upcoming Portfolio Review May 08 Product Image

Industry Report Card: Fundamental Issues Weigh On Global Investment Banks And Brokers; Upcoming Portfolio Review May 08

  • Published: May 2008
  • Region: Global
  • Standard & Poors

FEATURED COMPANIES

  • Citigroup Inc.
  • Credit Suisse Group AG
  • Deutsche Bank AG
  • JPMorgan Chase & Co.
  • Merrill Lynch & Co. Inc.
  • Morgan Stanley
  • MORE

Abstract
Standard & Poor's Ratings Services' industry credit outlook for the major investment banks and brokers is negative. The outlook reflects four main issues, which incrementally weigh negatively on the ratings on the companies covered in this report card: Increased risks that underlying revenues excluding write-downs for the industry as a whole could decline further than the anticipated 20%-30%, which are incorporated into our ratings. Ongoing global repricing of risks means that market valuations remain fragile. In addition, while markdowns on subprime mortgage-related exposures are likely to peter off for the industry, other areas remain exposed. Structural issues concerning some players' lower diversification in funding sources compared with universal banks in an environment where availability of wholesale liquidity continues to be...

Companies mentioned in this report are:
- Deutsche Bank AG
- Merrill Lynch & Co. Inc.
- Lehman Brothers Holdings Inc.
- Morgan Stanley
- JPMorgan Chase & Co.
- Citigroup Inc.
- Credit Suisse Group AG
- The Goldman Sachs Group Inc.
- UBS AG

Standard and Poors RatingsXpress Credit Research READ MORE >

- Deutsche Bank AG
- Merrill Lynch & Co. Inc.
- Lehman Brothers Holdings Inc.
- Morgan Stanley
- JPMorgan Chase & Co.
- Citigroup Inc.
- Credit Suisse Group AG
- The Goldman Sachs Group Inc.
- UBS AG

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