"More Bloodletting" As Citi/JPM See Plunge In Trading Volumes

Tyler Durden's picture

Jefferies, Deutsche Bank, and now Citi and JPMorgan are all facing a collapse in trading volumes as Bloomberg reports the two banks brace for a fourth straight drop in first-quarter trading revenues - a period of the year when the largest investment banks typically earn the most from that business. “It sounds like more bloodletting on Wall Street,” warns one analyst, as Citi expects trading revenue to drop by a “high mid-teens” percentage.


Via Bloomberg,

Citigroup finance chief John Gerspach said yesterday his firm expects trading revenue to drop by a “high mid-teens” percentage, less than a week after JPMorgan Chief Executive Officer Jamie Dimon said revenue from equities and fixed income was down about 15 percent.


If trading at the nine largest firms slumps that much, it would extend the slide from 2010’s first quarter to 36 percent.


“It sounds like more bloodletting on Wall Street,” said Jeff Davis, a managing director for the financial-institutions group at advisory firm Mercer Capital in Nashville, Tennessee.




Trading results have been hurt by a slowdown in the fixed-income business, which accounts for an average 80 percent of markets revenue at Citigroup, Chief Financial Officer Gerspach, 60, said yesterday at a presentation in Orlando, Florida.




Lower levels of client activity in a similar business pressured JPMorgan’s results, said Dimon, 57.




Jefferies Group LLC, the Wall Street firm owned by Leucadia National Corp., said today that trading revenue for the three months ended Feb. 28 was $450 million. That was 11 percent less than what it reported a year earlier.




In the past four years, those firms have generated an average 37 percent of their annual trading revenue during the first three months.

So who is buying this market up at new highs? Well, if CNBC is to be believed, the retail investor is back... Howard Marks warns:

“When things are rollicking and the market is permitting low-quality issuers to issue debt, that’s when you need a lot of caution,” Marks said in a telephone interview. “You have to apply a lot of discernment.”

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medium giraffe's picture

Cry me a river bitches.

ACP's picture

...all the while prop trading profits up 8545785456786%.

i_call_you_my_base's picture

Who needs clients when you have deposits?

Ness.'s picture

Unreal.  JPM's trading desk doesn't post a single losing day but yet they're complaining about losing profits?  Let's repeal Glass-Steagall and see how you cocksuckers do?  And don't bite the hand that feeds.  The FED manipulating the yield curve has ruined your fixed income profits but it allowed you to pump free money into the next bubble.  


Groundhog Day's picture

One day it will be just jamie "thats why I'm richer then you" dimon, few tech geeks and tellers in the branches.  Everyone else will be let go or suicided. The new jpm, and uncle warren will get on his knees and blow dimon for being a genius

BringOnTheAsteroid's picture

Oh no it won't. These sociopathic mother fuckers need control and power over people. Dimon and his ilk need to have many underlings, this is why they get up in the morning. Otherwise, why wouldn't these cunts retire and go and enjoy their ill gotten gains. It's because they have no identity sittng on a beach enjoying a sunset, they have no identity strolling through a forest and listening to the sounds and seeing the shafts of sunlight filter through the tree ferns, they have no identity in the solace of anonymity, they have no identity looking at the stars on a cold clear night, they have no identity in humility and empathy and treading softly on the earth. A sociopath only finds identity in power, this is what makes a sociopath what it is.

Flying Wombat's picture

Fed Nominee Stanley Fischer Has a Citigroup Problem:  http://thenewsdoctors.com/?p=120538

I know all of you will find this shocking. /sarc

Questions about money laundering...

fonzannoon's picture

The retail investor is absolutely back. They are throwing everything at this fucker, and they are just getting warmed up.

We just saw Bill Gross absolutely throw in the towel and follow Hugh Hendry. Give Howard Marks a few more months.  

buzzsaw99's picture

Howard Marks :vomits:

i_call_you_my_base's picture

If by "bloodletting" you mean people don't trust you with their money anymore, then yeah.

buzzsaw99's picture

bloodletting = higher stock prices and bigger bonuses

fonzannoon's picture

Sarah Palin said the market could go up.

tickhound's picture

I'm only now recovering from that pathetic jizz fest on her the other day.

disabledvet's picture

lotta leverage here.

"these things can so South in a hurry" too.
Who will America turn to in its time of Crisis?

buzzsaw99's picture

the maggots have old yeller, the rest of the country is fukked

John McCloy's picture

     Of course..who needs volume any longer..lower the volume the higher the artificial nominal HFT created prices of the stocks. 

GrinandBearit's picture

Why does this matter?   The market keeps going up.

poor fella's picture

I have one-hundred free trades a year...  Number of trades in 2013?  ZIPPO - NADA -  Here's my full-frontal you muthas.

And I honestly used to enjoy trading quite a bit. The machines and TPTB have murdered the markets. Everyone on CNBS is an actor and watching market action is like watching a simulation or Wall St. video game. Waste of time.

FilthyHabits's picture

I like blood. I own a few scalpels. I have several chairs. I own 400 feet of climbers cord.


Scramble these sentences in any order you like.


Point made.


They are whorable, whorable people; Arm yourselves.

MollyHacker's picture

Someone's matchbox algo-racer is losing steam.

NoWayJose's picture

In addition to destroying a generation of savers, the Fed has also destroyed a generation of traders -- individuals and institutional managers that used to have to pay attention to global and financial news (wink, wink - CNBC) and used to have to buy and sell at the right time. That generation will never be traders, and that means low trading volumes for a long, long time -- and that is not good for big banks.

Cacete de Ouro's picture

It's all just tedious squakbox non-productive soul-destroying frontrunning lying manipulative deceptive bullying bullshit anyway. Fuck em!

sschu's picture

I cannot help myself, but periodically I have to go back and watch the video where Jim Grant so succinctly makes the case why the actions of the Fed are so destructive.  Poor Stevie.    


Sept 2008 seems like so long ago, approaching 6 years now.  Does anyone really think the issues have been resolved that created the mess?

Seven years from 911, then the crash.  Seven to the next one.  Sept 2015.  Schmita.

Get ready, you have about 15 months to prepare.




Muppet's picture

2015?  "This is exhausting" quoting Talyor Swift.    I pray this ends sooner   The sooner the better.    

MrButtoMcFarty's picture

Hopefully soon to be followed by the bloodletting of plunging bankers.

'Tis to dream...

hangemhigh77's picture

How are these poor banksters going to survive on million dollar bonuses instead of billion dollar bonuses?  It's just terrible.  I hope the government can at least bailout their bonuses so they can continue to rape and pillage.

Colonel Klink's picture

Die fucking banks!

Judge Crater's picture

Now that the Big Boys see they cannot lure more retail customers in, time for the stock trading markets to take a dive and give the yokels a haircut.   

Rising Sun's picture

the retail investor is out or held up in small positions day trading this shit


there's no bagholders this time around


short squeezing is all these banksters can do - this takes a lot of time and pays out in peanuts

highwaytoserfdom's picture

losing shirt shorting these pukes...  FED TBTF pieces of crap using taxpayers reserves to pump positions.      Citi  is control tower for those Saudi pilots and Prince Whatever the Fu#k that owns big chunk and bought the world's 3 largest air force....  Neo-con  central money laundering central military industrial war profiteers..         THAT IS JUST CITI  JAMIE ahhhhhhhhhhhhhhhhh


Citi .. AKA as Rubin's kleptos (including Lew).

USA USA USA   feel safe now?

chinaboy's picture

The house always win?