Shares of financial institutions fell as major banks reported profits.
The country’s biggest banks fear a recession, but their third-quarter earnings still showed little sign of it.
JPMorgan, Wells Fargo and Citigroup all said on Friday they had pocketed hundreds of millions of dollars each to cover possible defaults, dragging their profits down. Still, revenue rose at all three banks and beat analysts’ forecasts. The decline in earnings was also broadly in line with what Wall Street had expected.
Meanwhile, the Federal Reserve approved US Bancorp’s acquisition of MUFG Union Bank’s core retail banking business, one of a series of large regional bank mergers pending before federal regulators. Along with the approval, regulators said they would launch a related rule-making process to bolster regulators’ ability to liquidate major regional banks in an orderly fashion if they fail.
British Prime Minister Liz Truss has sacked Treasury chief Kwasi Kwarteng and reversed crucial parts of her government’s tax cuts, after her plans to spur the economy back to growth unfolded dramatically following a a backlash from the financial markets and his party.
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(END) Dow Jones Newswire