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Another quarter, another failure by banks to do what they used to do so well under the Fed's QE: grow revenue.
Speaking at a banking conference in New York, the two largest US banks have warned that the trading slump which started about a year ago, will continue.
Citigroup - Quarter - Revenue - Year - US
Citigroup warned that second quarter revenue has declined compared to last year, following the largest US bank, JPMorgan, in reporting a downturn for the high profit margin business. And in a quarter in which the S&P was trading at all time highs less than a month ago, Citigroup CEO Michael Corbat found no shortage of scapegoats on which to blame the trading slump, including the relapse in the trade war, Brexit as wellas escalating tension between the U.S. and Ira, all of which have reportedly weighed on market sentiment in recent weeks.
"Clearly, trading revenue and wallets right now are down," Citi's CEO said quoted by Bloomberg, adding that "in periods of uncertainty, things tend to become pretty muted."
Traders - Clarity - Weeks - Banks - Q2
Traders hoping to get some more clarity will have to wait about 6 weeks, when the banks report Q2 earnings, as Corbat declined to give specific number about his firm’s performance in Q2, instead deflecting to Chief Financial Officer Mark Mason, who would "give more details in coming weeks." Yesterday, JPMorgan CEO Jamie Dimon warned this his firm's trading revenue had dropped 4% to 5% in the first two months of the second...
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