NEW YORK—Financial companies are expected to kick off their second-quarter reporting season with more profit declines.
Lehman Brothers recently shook up its management ranks after pre-announcing an almost $3 billion second-quarter loss and plans to raise $6 billion in fresh capital. Shares in the sector have been pummeled in the past year amid huge write-downs to cover credit-related losses.
Goldman Sachs has weathered the storm better than many peers, but is still expected to report a 31 percent decline in profit in its Tuesday report.
Morgan Stanley on Wednesday is expected to report a 59 percent drop in earnings.
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