Trading revenues generated by the largest banks continue to slide post the GFC

Trading revenues generated by the largest banks continue to slide post the GFC. America's big five-JPMorgan Chase, Goldman Sachs, Bank of America, Citigroup and Morgan Stanley-reported $21.6 billion in total trading revenue during the first quarter of 2014. That's down 10% from the prior year, and 41% from the all-time peak of $36.7 billion reached in 2009. The fixed-income, currencies and commodities trading units at major banks have been hardest hit. That area formerly was one of the main profit engines for the likes of Morgan Stanley and Goldman Sachs. This trend is not isolated just to US banks as Barclays and Deutsche also show a slump in trading revenues (see chart). The changes, however, should not come as a surprise. In most part these declines are a reflection of a more regulated and hopefully more stable financial system. (VIEW LINK)


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