Second quarter earnings coming

All eyes are on second-quarter earnings, and it looks to be interesting again. The stress test results and the subsequent capital raising led to a bevy of excitement about the industry's prognosis. But now reality may be starting to set back in. There is a lot of concern that banks are under-reserved as of now, especially when it comes to consumer credits, retail mortgage credit and commercial mortgage credit.

On top of that there are lots of wildcards out there, such as the charges related to movement of notes linked to a company's own debts. The write-ups can easily lead to write-downs. Goldman Sachs kicks off second-quarter earnings season on July 14. JPMorgan Chase & Co, Bank of America Corp and Citigroup also report results that week. Many rivals report the following week, including Wells Fargo. 

For more:
- here's a preview from Reuters