On Friday, Goldman Sachs (gs) and Lehman Brothers (leh) had their credit-rating outlook cut to negative by Standard & Poor’s, which said Wall Street banks’ profits may decline as much as 30% this year. S&P said in a statement that their current expectation is that net revenue could decline between 20 and 30% year-on-year for independent securities firms. However, S&P affirmed its long-term credit ratings for Goldman and Lehman. S&P said that even though the Fed’s financing for JPMorgan (jpm)’s takeover of Bear Stearns (bsc) “mitigates liquidity concerns”, they still “see some possibility, were there to be persisting capital markets turmoil and sharply weakening economic conditions, that financial performance could deteriorate significantly”.

Credit Suisse (cs), Switzerland’s second-largest bank, said it will write down $2.65 billion after a “small number” of its traders deliberately mispriced residential mortgage-backed bonds. Credit Suisse also said it’s unlikely to generate a profit this quarter.

Posted in Categories: Stocks.

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