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Banks (Finance)

Financial Shares Plummet Amid European Debt Crisis and Restructuring Plans

Strategic Insights

— 1 min read

Financial shares are trading lower in today's pre-market session, driven by yesterday's weak manufacturing data and ongoing concerns over the European debt crisis. Bank of America (BAC) is down 1.71% to $6.89 a share, following news that it is cutting 3,500 employees this quarter and working on restructuring plans that will ax several thousand more jobs. The bank's share price has fallen nearly 50% so far this year. In related news, UBS (UBS) and Credit Suisse (CS) have denied using the Federal Reserve's swap facility via the Swiss National Bank.

Key Takeaways:

  • Financial shares are trading lower in the pre-market session, with JPM -0.85%, BAC -1.71%, WFC -1.64%, C -1.93%, and USB -1.76%.
  • Bank of America (BAC) is cutting 3,500 employees this quarter and planning further job cuts, potentially exceeding 10,000 employees.
  • The bank's share price has fallen nearly 50% so far this year.
  • UBS and Credit Suisse have denied using the Federal Reserve's swap facility via the Swiss National Bank.
  • Reuters reports that UBS is down 1.19% to $13.25, while Credit Suisse is trading 1.42% lower, reaching a new 52-week low of $26.29 a share.

Statistics:

  • 3,500 employees at Bank of America are being cut this quarter as part of restructuring plans.
  • The potential number of job cuts at Bank of America might exceed 10,000 employees, approximately 3.5% of its current workforce.
  • Bank of America's share price has fallen by nearly 50% so far this year.
  • 1.71% is BAC's share price drop in today's pre-market session.
  • Shares of UBS are down 1.19% to $13.25.
  • Credit Suisse's share price has reached a new 52-week low of $26.29.

Sources:

  • "Top Financial Shares: JPM, BAC, WFC, C, USB" (MidnightTrader via COMTEX) on August 19, 2011
  • Reuters "UBS and Credit Suisse deny using swap facility" (no date specified)
  • Copyright (C) 2011 MidnightTrader.com. All rights reserved.
  • As of August 15, 2011, Comtex SmarTrend Alert indicated a downtrend on BAC on January 25, 2011 at $13.62.
  • As of August 15, 2011, Comtex SmarTrend Alert indicated a downtrend on CS on August 2, 2011 at $34.18.
  • As of August 15, 2011, Comtex SmarTrend Alert indicated a downtrend on USB on August 5, 2011 at $24.08.

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