SOURCE: Paragon Financial Limited

Paragon Financial Limited

January 19, 2012 08:20 ET

Regulatory Pressures Weigh on Growth at Goldman Sachs and State Street

The Paragon Report Provides Equity Research on Goldman Sachs & State Street

NEW YORK, NY--(Marketwire - Jan 19, 2012) - Major Banks have reported a mixed bag of results this earnings season. While loan growth is on the upswing, banks with a heavy focus on trading struggled in the fourth quarter. As reported in Bloomberg, concerns that the European debt crisis would lead to a global economic slowdown curbed trading volume and investment-banking deals in the year's second half. The Paragon Report examines investing opportunities in the Money Center Banking Industry and provides equity research on Goldman Sachs Group Inc. (NYSE: GS) and State Street Corporation (NYSE: STT). Access to the full company reports can be found at:

Mike Mayo, an analyst at CLSA Ltd., told Bloomberg News that U.S. banks' revenue growth in 2011 was probably the slowest since the Great Depression and is unlikely to improve this year. Acting Comptroller of the Currency John Walsh recently warned that the Volcker rule's restrictions on proprietary trading and hedge fund investments could put U.S. banks at a competitive disadvantage to their foreign counterparts.

The Volcker rule would curb banks' trading with their own funds and would limit their investments in hedge funds -- restrictions that would reduce their profitability.

The Paragon Report provides investors with an excellent first step in their due diligence by providing daily trading ideas, and consolidating the public information available on them. For more investment research on the Money Center Banking industry register with us free at and get exclusive access to our numerous stock reports and industry newsletters.

In other regulatory news, the FDIC recently approved a notice of proposed rulemaking (NPR) that would require certain large insured depository institutions to conduct annual capital-adequacy stress tests.

Under the proposal, the FDIC by mid-November each year would provide banks with three economic scenarios for the future. By Jan. 5, banks would send the FDIC a report on how the institution would cope with the scenarios. The reports would be published 90 days after that.

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