To many bank watchers, that’s a jolt. Betsy Graseck, an analyst at Morgan Stanley, cut her per-share earnings estimates for Bank of America and Goldman after the J.P. Morgan settlement, predicting that they’ll have to set aside more in legal reserves.
What’s more, the prophecies seem to already be materializing. Bank of America disclosed last week that its legal losses could go more than $5.1 billion beyond reserves. In the previous quarter, the estimate had been just $2.8 billion.
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