NEW YORK, NY -- (Marketwire) -- 11/09/12 -- A day after President Obama was re-elected shares of financial stocks fell sharply, with major banks leading the way, as investor focus has now been shifted towards the upcoming "fiscal cliff." The Standard and Poor's 500 Financials Index declined 3.53 percent Wednesday. Five Star Equities examines the outlook for companies in the Banking Industry and provides equity research on JPMorgan Chase & Co. (NYSE: JPM) and Morgan Stanley (NYSE: MS).

Access to the full company reports can be found at:

www.FiveStarEquities.com/JPM

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A majority of Wall Street had backed Mitt Romney in the hopes of easing regulations such as the Dodd-Frank Wall Street Reform and Consumer Protection Act. The upcoming "fiscal cliff" has become a major concern for the financial sector now that the U.S. House of Representatives remains under Republican control.

"We see the risk that we temporarily fall over the cliff to be larger than it would be under a Romney victory," Merrill Lynch analysts said. "President Obama has called for tax increases for the upper-income cohort, which the Republicans have resisted. If Republicans do not concede ground on this issue, then the risk rises that Democrats allow the Bush tax cuts to all expire in order to push their own middle-income tax-relief plan."

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JPMorgan has recently received regulatory approval to resume its stock repurchasing program, which they suspended in May due to major losses from the London Whale derivatives trade. The company plans to repurchase up to $3 billion in stock beginning in the first quarter of 2013. JPMorgan also announced on Thursday that it has reached a settlement with the SEC to resolve their investigations related to mortgage-backed securities.

Morgan Stanley has recently reported that it posted a loss for only 8 trading days in the third quarter, down from 31 days a year prior. For the third quarter Morgan Stanley saw a 40 percent sequential increase in trading revenues. It has also been reported that the bank is considering selling its wealth-management unit in India.

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