Analyst: banks could have nasty earnings season

Analyst: banks could have nasty earnings season

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Big banks could face headwinds from fixed income trading and weak underwriting revenues in the third quarter, Barclays' Jason Goldberg said. But there are some positives in terms of


good loan growth and benign quality, "so you have some downside protection to such time as the Fed does eventually raise interest rates," added Goldberg, Barclays managing director


and senior equity analyst. Goldberg said that despite a "challenging capital markets quarter," he favors the bigger banks over the regional ones. "We think the regulatory


environment is getting a little bit easier as the banks put some legal woes behind them," he told CNBC's "Power Lunch" on Friday. Dick Bove: US banks have been


'nationalized' He favors Goldman Sachs, JPMorgan Chase and Citigroup for their "cheaper valuations." JPMorgan Chase kicks off the earnings season for the large financials


when it reports after Tuesday's closing bell. _Disclosures: Barclays has received compensation for both investment banking and non-investment banking services from JPMorgan Chase,


Wells Fargo, Goldman Sachs, Bank of America, Morgan Stanley and Citigroup in the past 12 months. One of the analysts on the coverage team (or a member of his or her household) owns shares of


the common stock of JPMorgan Chase, Bank of America and Citigroup. _