ANCHOR QUESTION OFF-CAMERA (ENGLISH) SAYING:

As we wait for these numbers, can we paint bank earnings with a broad brush this quarter, or will each company have its own story to tell with their results?

PAUL MILLER, BANK ANALYST, FBR (ENGLISH) SAYING:

Well, banks always have their own story to tell. That's one of the unique things about banks. Everybody does want to paint with the same brush because the same drivers drive the economy, the yield curve, all these macro things. But every bank does have a unique story. So, you can't sit there and say, 'What's going to happen across all the banks?' But I will say this- given where we are in the economy, given the fact that the rates have dropped, given the fact that we are seeing some loan growth but not a lot, and on the mortgage banking side, we'll probably going to report a 14-year low in originations, I think banks will struggle through the earnings process. Not saying they're all going to miss numbers. If they do miss, there would be a couple of pennies here and there but I do think that the banks' earnings will be somewhat of a disappointment. I don't think investors really care. Investors are not looking at this quarter, next quarter, or even the third quarter in earnings. What they're looking at is 2015 and 2016 and hoping for higher rates. Now we do get higher rates. They believe that the banks' earnings will grow a lot and that's what really people are trading these banks on, not on what's happening now. Now, a lot of investors look at it as the rear view mirror-type investing and they don't do that. They're looking forward out and banking on higher rates down the road.

ANCHOR QUESTION OFF-CAMERA (ENGLISH) SAYING:

So how will we see banks' bottom lines benefit? It's been a while since we can talk about rising interest rates and the impact on the bottom line. Would you expect for instance, some of these shops to beef up the fixed income side of their business?

PAUL MILLER, BANK ANALYST, FBR (ENGLISH) SAYING:

Well, right now, fixed income especially for the big guys are struggling a little bit. MBS issuance, which is one of the biggest trading blocks for these fixed income debts is down to $55 billion in the month of March. Almost- we were at $160 billion a year ago back in April and May. That's a huge amount of volume that has gone. It's mainly gone because the refis have gone away and the purchase market in the origination numbers have not really come back so, no. You can't really beef up your fixed income trading desk. I think what you're going to see is some layoffs and downsizing in that as I believe a lot of people are going to be looking at this mortgage market given where rates are today and that rates are not expected to fall, that we're probably at a low or- and be at this low lying level for origination. So that's not where it's going to come from. What banks are going to talk about, they're going to talk about how great the lending environment is, that how many businesses are coming to them that optimism has come back to the business world. This is what they talked about in the first quarter. And this- I mean, in fourth quarter earnings calls and this is what they're going to talk about in the second earnings calls.