I can't say if this forces anyone's hand, but it suggests that Capital One's time as a stand-alone entity might be limited, and raises its potential value in the marketplace.
From the standpoint of gaining market share and remaining competitive, it's a step in the right direction. The question becomes whether they paid the right price.
Broadly diversified financial services firms, and banks in particular, are looking to augment their revenue, ... This is essentially a bet that the U.S. consumer, contrary to what you may read, is not tapped out.
I know a lot of people were bracing for the worst. But they've righted the ship, stabilized things and have everybody rowing together. And you have one of the best market environments in some time.
Citigroup already broke the ice. There is less market impact for Bank of America.
They just can't get out of their own way. Citigroup may need to further disassemble parts of its operations to satisfy shareholders.
The magnitude of the surprise was bigger than most people were expecting, ... Earnings and revenue were driven by proprietary trading and M&A activity and its role as prime broker and clearinghouse for hedge funds.
The hourly earnings number was a little weaker than forecast. That means that more people are working, but wage pressure remains contained, and that helps profitability.
It's symptomatic of issues going on beneath the surface. They're still trying to get their house in order. Their stock hasn't been doing very well.