Banks Tumble After BofA, JPM Warn Revenue Will Be Down As Much As 15%

Tyler Durden's picture

The collapse in volatility is finally trickling up to the big banks.

Moments ago, JPM CFO Marianne Lake speaking at a Deutsche Bank conference in New York, warned that contrary to expectations for an ongoing rebound in revenue and profits, the bank's second quarter revenue has been 15% lower from a year ago. And while she said that US economic figures are "solid, not stellar", she blamed the same thing that has been the nightmare of daytraders everywhere: collapsing volatility. 

From the newswires

  • JPMORGAN 2Q MARKET REVENUE HAS BEEN DOWN ABOUT 15 PERCENT FROM YEAR EARLIER, CFO SAYS
  • JPMORGAN CFO SAYS MARKET REVENUE LOWER ON LOWER VOLATILITY THAN YEAR EARLIER
  • JPMORGAN CFO: LOW RATES, LOW VOLATILITY HAVE LEAD TO LOW CLIENT FLOWS
  • JPMORGAN CFO: DOESN'T SEE REASON 2Q TREND WOULD CHANGE IN JUNE

It wasn't just JPM: while it did not give a specific range, Bank of America CEO Brian Moynihan also warned that Q2 trading revenues will be lower than a year ago.

  • BANK OF AMERICA 2ND QTR TRADING REVENUE WILL BE LOWER THAN A YEAR AGO, CEO SAYS

The news has hit the bank sector, which was not expecting this early guidance cut, with Goldman sliding more than 2% in early trading.

And with absolute yields levels plumbing 2017 lows and the yield curve at its flattest in 8 months...

Bank are getting hit by a double whammy of not only the flattening yield curve, but the prospect of lower revenues.

It is still not too late sell in May...

 

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BaBaBouy's picture

Ha, Tuff Luck, The CB's own all the stocks...

Print Fiats & Buy, Print & Buy...

NugginFuts's picture

Bankers: "We will have to cause a panic in the stock market to increase volatility. We advise all our Platinum clients to sell now and avoid the major plunge we are about to create. Detonation in 3.....2......1......:

WTFRLY's picture

Joominati already picked up all the pennies they could squeeze out since the GFC

JRobby's picture

They didn't realize the sheep are maxed out, many not paying?

espirit's picture

 

Nah, the way I read this is the Algo’s electricity bill is 15% above the sub-pennies they’re scalping from each other.

 

If there is an algo hell, I hope they find it soon.

  

PlayMoney's picture

One would think JPM could easily make that up by front running their customers and rigging the metals market. Maybe they should hire more criminals.

small axe's picture

epitome of useless: revenue down on lack of churn.

send the bankers to learn a useful skill, such as flipping burgers.

PlayMoney's picture

that means the Fed will have to create more churn (volatility) so their boys can pocket more bank

101 years and counting's picture

you mean the Fed smashing vix everyday, creating little volatility has an adverse effect?  no way.  surely the fat, senile pig running the fed would know that.  even if she doesnt know what CDS are....

LawsofPhysics's picture

Even when they are getting FREE MONEY (ZIRP/NIRP) these fuckers can't make an honest profit!!!!!

LMFAO!!!  Fuck'em

Take their motherfucking heads, every, single, one. Then claw back all assets (making the treasury whole again), re-instate Glass Steagall and balance the fucking budget. If the politicians won't balance the budget, take their heads as well!

NOTHING changes otherwise.

asteroids's picture

It's not about profit. It's about "cash flow" through their ledgers and how muck they can skim. They are parasites. Should the host get ill or die, they'll cry "bail-out".

LawsofPhysics's picture

Good luck with that.

"Full Faith and Credit"

Jump you fuckers!!!

Horse Pizzle's picture

Algorithm vs Algorithm.  No retail suckers.

Racer's picture

Yes - they scared them all away and no-one left to fleece

Racer's picture

Can't even make money in a rigged "market"! I hope they go bust - should have happened a long long time ago

globalintelhub's picture

Buy stuff from Amazon, from the comfort of your own home - yeah!  www.pleaseorderit.com

Seasmoke's picture

Surely Brian Moynihan deserves that $10 million+ each year. Stealing people's houses is tough work. 

Ricki13th's picture

Lmao they rig the markets with their bullshit. But now it's starting to backfire on these fuckers. I say good have a taste of your own medicine. Expect a jump in the VIX as the summer months come in. I think the markets have top for this year.

Iconoclast421's picture

Why cant all the major indices look like $BKX? It is flirting with its 200 sma rather than being way up in the stratosphere where I dont dare touch it.

yogibear's picture

Bullish! Means more central bank intervention.

JailBanksters's picture

I think this is just a Warning, a Warning that you will have to work 15% harder so you can Bail them out....again.

 

trouba z ceska's picture

Only 15 %? Bullish! By the way, PPT is working hard to turn it into a green day anyway

yogibear's picture

PPT and Fed are the magic hands that turn a mkt falling apart to green. They will not allow a free market price discovery.

GodHelpAmerica's picture

Lol big banks need volatility to make profits but the bigger banks need no volatily to keep their jobs. Guess who wins...

Downtoolong's picture

 

“she blamed the same thing that has been the nightmare of daytraders everywhere: collapsing volatility. “

 

In other words, we can’t front run our clients if they’re not even trying to go somewhere.        

  

Chris88's picture

More like less vol,less trades, lower commissions.  But yeah, front running, uh...bankster, Goldman, evil....sure.

Chris88's picture

We'd like to thank the retards who bought subpar community banks from us at 2.5x TBV, without you retards we could never make the returns we do.  When the panic ensues please sell them back to us cheap, thanks in advance.

Bunga Bunga's picture

Economy in a nutshell:

1) Give out loans to everyone - banking business & money supply is surging

2) Shut down loans - banking business & money supply is collapsing

3) Defaults and bankruptcies come in, since loans from 1) cannot be serviced because of 2)

4) Let spin the economist's Voodoo "no one could have seen this coming" & "the end of the world is  nigh" in all the media outlets so politicians get to shit into their pants

5) Collect bailouts

6) Rinse, repeat