Moody's Investors Service has cut various ratings on UBS AG (UBS) pointing out the significant challenges the company continues to face in its Investment Banking and Wealth Management businesses.  Moody's has downgraded the bank financial strength rating and the long-term debt and deposit ratings of UBS AG. The bank financial strength rating was lowered two notches to C from B-, while its deposits and senior debt ratings were lowered to Aa3 from Aa2. The ratings for senior subordinated debt were slashed to A1 from Aa3. The outlook for all ratings is negative implying that further downgrades are possible over the next 12 to 18 months.   Moody’s has expressed its concern over the loss of customer confidence, which is reflected by the ongoing net fund money outflows in the wealth management business. Also a number of key employees have left the organization that resulted in a significant ...

Goldman Sachs Group Inc. (GS) is contemplating buying tax credits from Fannie Mae (FNM). However, it may be reasonable to assume that the U.S. Treasury may not approve of the deal. Goldman hopes to receive approval this week for $1 billion worth of tax credits. Tax credits are incentives designed to bring more investment to low-income housing developments. This would help the company reduce its tax bill as well as bring some much-needed financial relief to Fannie Mae. While financial details of the proposed transaction are not disclosed, Goldman could arrange other investors for the deal as well. The Obama Administration, however, is opposed to the deal, as it will reduce Goldman's tax bill at a time when Wall Street is already facing intense public scrutiny. Fannie Mae, a government-controlled mortgage financier, could get financial relief if Goldman bought the tax credits. As ...

The Goldman Sachs Group Inc. (...

For Immediate Release

Chicago, IL – October 16, 2009 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Goldman Sachs Group Inc. (GS), ASML Holding N.V. (ASML), Applied Materials (AMAT), KLA Tencor (KLAC) and Lam Research (LRCX).

Get the most recent insight from Zacks Equity Research with the free Profit from the Pros newsletter: http://at.zacks.com/?id=5513

Here are highlights from Thursday’s Analyst Blog:

Goldman Beats Zacks Estimate

Goldman Sachs Group Inc.’s (GS) third quarter 2009 (ended Sept. 25, 2009) earnings of $5.25 per share were significantly ahead of the Zacks Consensus Estimate of $4.13.

Results reflected strong performance in the trading operations, which offset the decrease in

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Goldman Sachs Group Inc.’s (GS) third quarter 2009 (ended Sept. 25, 2009) earnings of $5.25 per share were significantly ahead of the Zacks Consensus Estimate of $4.13. Results reflected strong performance in the trading operations, which offset the decrease in investment banking division. The company also reported a drop in expenses on a sequential basis. GAAP net income in the third quarter of 2009 was $3.0 billion or $5.25 per share compared to $2.7 billion or $4.93 per share in the prior quarter (ended June 26, 2009) and $0.8 billion or $1.81 per share in the prior-year quarter (ended Aug. 29, 2009). Total revenue decreased 10% sequentially, but was more than double from the prior-year period to $12.4 billion. Operating expenses, however, decreased 13% sequentially but were up 49% year-over-year to $7.6 billion. Expenses were down sequentially as a result of lower compensation and benefits ...

Credit Suisse Group (...

The probably bankruptcy of CIT Group Inc. (NYSE: CIT) could have major implications on the retail and manufacturing sectors this week, as many related companies are reliant on the financing giant.

With options running out over the weekend, CIT advisors began preparations for a bankruptcy filing. As of Sunday, JPMorgan Chase & Co. (NYSE: JPM) and Morgan Stanley (MS) were talking with other banks about a debtor-in-possession loan, used to fund a company’s operations after it seeks court protection from creditors, Bloomberg News reported.

Bondholders held calls last week to discuss whether to swap some claims for equity to reduce indebtedness. Thomas Lauria, a lawyer at White & Case LLP, told Bloomberg that a group of CIT creditors he represents offered to provide $3 billion in new loans to bridge CIT to an out-of-court restructuring or an orderly bankruptcy, but had yet to hear back from CIT management.

“It seems CIT was

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It takes more than two to make a trend.  JPMorgan Chase & Co. (NYSE: JPM) yesterday (Thursday) became the second major U.S. investment bank – following Goldman Sachs Group Inc. (NYSE: GS) – to this week report windfall profits for the second-quarter. That’s helped fuel a four-day advance in U.S. stocks that’s seen the Dow Jones Industrial Average surge 7%.

Unfortunately, these two decidedly positive developments don’t necessarily indicate that better days have arrived for the U.S. banking sector.

To the contrary, many analysts – including Money Morning Investment Director Keith Fitz-Gerald – say these profits are merely a mirage created by an obscure accounting rule that allows banks to transform “toxic debt” on their balance sheets into income.

JPMorgan, the second-largest U.S. bank, said that that second-quarter profits were $2.7 billion, a jump of 36% from a year ago and 27% from the

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Business New Europe Jason Corcoran in Moscow September 25, 2008The experience of enduring Russia's last financial crisis in 1998 was burned into the psyche of Stephen Jennings when he opted on September 22 to sell half of his investment bank Renaissance Capital to billionaire oligarch Mikhail Prokhorov. Forsaking the bank's treasured independence was a tough call for its chief executive, but better than facing the prospect of teetering towards extinction as it did in 1998 when the Russian government's default reduced Renaissance to a shell and forced Jennings to slash the headcount to 190 staff, from 650. "We have a large shareholder base, a great team in place and 1,500 employees in the bank. We could have run the gauntlet and I think we would have made it, but we didn't know what was ...

Capital City Energy Group, Inc. (OTCBB: CETG) is an oil and natural gas company whose business has evolved from being an innovative leader in the design, management, and sponsorship of retail and intuitional direct participation energy programs, to become one of the few vertically integrated independent oil and natural gas companies. The company focuses on growing their portfolio of core areas which provide growth opportunities through grass-roots drilling, operating, service companies, acquisitions, and fund management.

The upper management team is headed by Mr. Timothy W. Crawford, Chairman and CEO of Capital City Energy. He designed and introduced Capital City Energy’s first energy fund that was offered to individual investors. His management experience is vast as he was the managing director for a group of professionals that consulted for businesses and high net worth individuals to review and explore alternatives

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