Fly Intel: What to watch in next round of big banks' earnings reports
Goldman Sachs (GS), Bank of America (BAC) and Morgan Stanley (MS) are scheduled to report quarterly results on April 15, 16 and 17, respectively. What to watch for: 1. 1MDB SCANDAL: Citi analyst Keith Horowitz said that after researching the 1MDB case and speaking with a subject matter expert, he thinks Goldman Sachs "faces a tough legal setup." The analyst expects the company to settle with regulators and estimates a range of penalties from $1.5B-$9.0B, with a base case of $4B-$5B. Further, he sees suspended business activities as unlikely. 2. APPLE CARD: Two weeks ago, Apple (AAPL) announced the Apple Card and said it is partnering with Goldman Sachs and Mastercard (MA) to provide the support of an issuing bank and global payments network. "As a newcomer to consumer financial services, Goldman Sachs is creating a different credit card experience centered around the customer, which includes never sharing or selling data to third parties for marketing and advertising. Mastercard will provide cardholders the ability to shop at merchants around the globe," Apple said, adding that the Apple Card will be available to qualified customers in the U.S. this summer. 3. SHARE REPURCHASE PLAN: Back in February, Bank of America announced an increase to its common stock repurchase program by an additional $2.5B in common stock to be repurchased by June 30, 2019. The company previously announced plans on June 28, 2018 to repurchase $20B in common stock from July 1, 2018 through June 30, 2019, plus repurchases to offset shares awarded under equity-based compensation plans during the same period, estimated to be approximately $0.6B. 4. MORGAN STANLEY PRESIDENT TO RETIRE: Meanwhile, Colm Kelleher, Morgan Stanley's president, has announced he is retiring, according to The Wall Street Journal's Liz Hoffman. His seat won't be immediately filled, the report added, noting that CEO James Gorman plans to stay on in the role for three to five years. 5. BREXIT: Goldman Sachs Asset Management and BlackRock (BLK) are planning to move some British-based fund managers temporarily to New York in the event of a no-deal Brexit, Reuters reported, citing two sources. The fund managers would eventually be transferred to mainland Europe to handle client accounts there once Britain and the EU agreed on a regulatory framework, sources added.