Bank of America
As the accompanying chart shows, Morgan Stanley cut 2012 Bank of America earnings estimates by 7% to $1.38 from $1.47. Other banks that saw estimates cut by 7% -- the most of any bank -- were State Street Corp. (STT)
The main reason for the reduced estimates is the impact of lower yields on two to five year Treasuries, which negatively impacts the banks' net interest margins (NIM), the report states.
"We expect continued NIM compression over the next 12 months as Fed flattens the curve," Morgan Stanley's analysts write.