FINANCE INSIDER: Wall Street ‘wills’

Finance Insider is Business Insider’s midday summary of the top stories of the past 24 hours.
To sign up, scroll to the bottom of this page and click “Get updates in your inbox,” or click here.

Five Wall Street banks have failed to submit adequate “living wills,” federal regulators announced on Wednesday.

JPMorgan, State Street, BNY Mellon, Bank of America, and Wells Fargo submitted deficient plans for winding down operations in the event of a bankruptcy, both the Federal Deposit Insurance Corporation and Federal Reserve found.

The FDIC also rejected Goldman Sachs’ plan, while the Fed found Morgan Stanley’s plan deficient.

In other bank news, JPMorgan kicked off earnings season on Wall Street with a beat on the top and bottom lines. The firm announced earnings per share of $1.35 (versus $1.24 expected) on revenue of $24.08 billion ($23.80 billion expected).

That’s down significantly from the same quarter a year ago, but it’s still a solid beat. And coming out of a quarter that was expected to be disastrous, it certainly sets the bar for the rest of Wall Street.

Bank of America and Wells Fargo are up next with first-quarter earnings on Thursday.

Here are the top Wall Street headlines at midday:

Citi is reportedly cutting 70 sales and trading jobs in London — Bloomberg reports that Citigroup is cutting 70 sales and trading positions in London to make up for disappointing trading revenue.

Bank of Canada holds, warns the oil price shock will ‘dampen’ growth — “The Canadian economy’s complex structural adjustment to the oil price shock is ongoing and will dampen growth throughout the Bank’s projection horizon,” the BoC wrote.

Valeant CEO Mike Pearson agrees to be deposed by a Senate committee — Valeant is one of the companies targeted in the Senate probe of drug prices. CEO Michael Pearson previously didn’t comply with a Congressional subpoena to attend a deposition.

One of Valeant’s creditors gave it the worst possible news — One of Valeant Pharmaceuticals’ creditors has told the company that it will call a default on the company.

Bloomberg TV’s star anchor Stephanie Ruhle is leaving for MSNBC — Ruhle will be a daytime anchor for MSNBC.

The hottest trend in global finance is super depressing — The hottest word in finance right now is “stabilizing,” and the hottest trend is complacency.

It’s earnings season on Wall Street — brace for a rough one — The first quarter is typically the strongest for investment banks, but c
hoppy trading conditions in early 2016, fears over China’s growth, and a collapsed oil price are thought to have created a
“perfect storm”
for banks this year.