(Bloomberg) -- Never mind that Wall Street's profit
growth in the second quarter probably was the worst in two
years. A new regulation relieving capital restraints may enable
the biggest U.S. securities firms to make the rest of 2007
exceptional for shareholders.
Goldman Sachs Group Inc., Morgan Stanley, Merrill Lynch &
Co., Lehman Brothers Holdings Inc. and Bear Stearns Cos. have
the potential to earn $4.4 billion more annually as early as
next year by moving money out of safe investments into higher-
returning bets, said Dorothy Leas, a former treasurer at Paine
Webber Group Inc. and Cowen Group Inc. The earnings gain, which
would equal 14 percent of the New York-based firms' record
profits of 2006, follows a rule change that allows them to hold
less money in reserve for potential losses.
Read more at Bloomberg Currencies News
growth in the second quarter probably was the worst in two
years. A new regulation relieving capital restraints may enable
the biggest U.S. securities firms to make the rest of 2007
exceptional for shareholders.
Goldman Sachs Group Inc., Morgan Stanley, Merrill Lynch &
Co., Lehman Brothers Holdings Inc. and Bear Stearns Cos. have
the potential to earn $4.4 billion more annually as early as
next year by moving money out of safe investments into higher-
returning bets, said Dorothy Leas, a former treasurer at Paine
Webber Group Inc. and Cowen Group Inc. The earnings gain, which
would equal 14 percent of the New York-based firms' record
profits of 2006, follows a rule change that allows them to hold
less money in reserve for potential losses.
Read more at Bloomberg Currencies News
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