Bank earnings in the third quarter where the S&P is going from here and big news about the housing market because this is where the money is.

Hi Fool's, I'm analyst Michael Douglas here with senior baking specialist John Maxfield

you may recognize my face my voice from where the money is the health care

edition on Wednesdays I'm in fact with with both now, financials and health care, so you'll hopefully

be seeing quite a bit of me and hopefully that will be fun for everybody.

But I'm here with John today and we are going to be talking first off about bank earnings expected to rise in the third quarter.

Now that's a headline from the Wall Street Journal.

Analysts are projecting that the six biggest banks will increase their combined net income

by about 16.2 billion in the quarter

ending September 30th. That equates to about a 21% year over year increase.

John, where is this coming from?

So what we're seeing here, Michael, is it's coming from three different sources. Number one it's coming from

loan growth, it's coming from investment banking fees and it's coming from

higher revenue from trading. So those three things are expected to fuel the increase and

you can see that in breakdown of the banks that are really expected to do well. You

have your Morgan Stanley's your Goldmas Sachs and your Citigroup which are your

traditional Wall Street banks,

that have the largest year of your expectations of EPS growth.

So for Morgan Stanley, it's 11%, Goldmasax 8%, and Citigroup is 14%. Now on the other side of the equationigroup is 14%.

Now on the other side of the equation,

you have your more traditional lenders,

your Wells Fargo and your JPMorgan Chase.

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