Turmoil in the derivatives market has prompted Salomon Brothers Inc. to lower its fourth-quarter earnings estimates on four of the top five trading banks.
In a recent report, Salomon Brothers' analyst Diane B. Glossman said the deterioration in banks' trading businesses, which began earlier in the year as rates started to rise, shows no signs of abating. As a result, she has lowered her fourth-quarter earnings estimates on Chase Manhattan Corp. to $1.25 per share from $1.47. Chemical Banking Corp. was lowered to 73 cents from 88 cents. Bankers Trust New York Corp. was lowered to $1.60 per share from $1.98 J.P. Morgan & Co. was lowered to $1 from $1.25.