Goldman Sachs (NYSE: GS) Cuts Estimates On Bank Of America (NYSE: BAC), JP Morgan (NYSE: JPM) And Morgan Stanley (NYSE: MS)

Analysts at Goldman Sachs (NYSE: GS) cut earnings estimates for the current quarter and full-year on several names in the banking sector, including Bank of America (NYSE: BAC), JP Morgan (NYSE: JPM) and Morgan Stanley (NYSE: MS).   The investment bank cited weak capital markets revenue during February as the reason for its reduction, according to a report by TheStreet.com.

On a whole, Goldman expects earnings at big banks to be down roughly 15 percent on average for the first quarter, while its view for full-year 2010 earnings calls for a 3 percent dip.

According to the report, Goldman cut its estimates on Bank of America’s first quarter earnings to 8 cents a share from 10 cents a share, while trimming full-year estimates a nickel to $1 a share.

The firm expects earnings at JP Morgan (NYSE: JPM) in the first quarter to hit 70 cents a share, down from earlier estimates of 74 cents a share.  For the full-year, estimates call for $3.25 a share, down 5 cents from original estimates.

Earnings estimates for Morgan Stanley were cut 16 cents a share to 55 cents a share for the first quarter, while Goldman now expects $2.95 a share for the full-year, down 5 cents from original estimates.

Despite the reduced earnings estimates, Goldman still remains upbeat on the sector for the rest of the year, according to the report.  The firm is still positive on fixed income and currencies business, expecting growth compared to the fourth quarter.

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