JPM Warns Trading Revenue To Tumble 20% In Q3, May Halt Trading Revenue Guidance

Tyler Durden's picture

Yesterday it was Citi's turn: Citigroup CFO Brian John Gerspach warned that the bank's markets revenue in the third quarter which is ending in less than three weeks, will be down 15%, as the third quarter "is lacking the volatility that pushed revenue higher in third quarter of 2016" underscoring as he did last quarter, that volatility remains “subdued."

As we said yesterday, "for that he, and his other banker peers, can thank the central banks, who have made selling vol and BTFD the only two concepts an entire generation of traders is aware of."

Not even 24 hours later we got another confirmation that to every Fed VIX slam, there is now an opposite revenue reduction by the Big US banks, which desperately need volatility to boost their sales and trading business. Moments ago JPMorgan’s Jamie Dimon spoke at the Barclays financial conference, where he said that trading revenue in Q3 was on pace to drop by 20% Y/Y, and worse, the CEO said he is considering halting guidance on trading revenue.

This disclosure by JPM concludes a bizarre day in which first Goldman accelerated its pivot to a bricks and mortar retail bank, and now America's most powerful bank, JPMorgan, is warning that at a time of all time market highs and a "roaring, coordinated" global recovery, its top line is not only slumping, but it either does not have visibility or simply does not want to disclose it... which is worse.

JPM stock, while dropping initially, has promptly rebounded as the BTFD algos immediately filled the gap.

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Five Star's picture

Retail participation is through the floor. Nearly the fewest people on record say they own stocks

Osmium's picture

Quick, somebody print some money out of thin air and hand it to them.  For God's sake, it's for the children!

ReturnOfDaMac's picture

NO, Jamie, not you too!  After forty years of buying and selling tech, I finally decide to go long financials and now  Was better off with pet rocks, sigh.

spastic_colon's picture

JPM Warns Trading Revenue To Tumble 20% In Q3, May Halt Trading Revenue Guidance

stock announcement ironically same time AAPL spikes........the indexes are risk-free

Pleb_From_Windsorstan's picture

Where's that bitch Janet?

Bring volatility(controlled) back else ..........

Edit: Inside the boardrooms, it appears that banksters are worried.

Take the collapse of Roman empire & scale it to the world. With the short term mindset we have now, it is going to be quick and painful.

Cutter's picture

If treasury yields dramatically decline as many are prdicting, with the 10 year yield touching the previous low of 1.3 percent, how will the banks, insurance companies and financial institutions survive? If they can't make money on yields and they can't make money on trading, where are they going make their money, fees?

Juggernaut x2's picture

And pension funds with their 8%/year  targets-  LOL

Cutter's picture

Agree. It's a world gone mad.

venturen's picture

call the swiss, call the japs, call the chinese, the saudis, the english, the Germany...for the love of god...somebody Print Something!

SharkBit's picture

Said the globalist tool with a massive vested interest.

Grandad Grumps's picture

Maybe Dimon should resign if he cannot hack it!

JoeTurner's picture

Oye vey, it's annuda shoah !

TheSilentMajority's picture


Less revenue is bullish in todays "markets".

silverer's picture

It's hard to make trading revenue when it's only the central banks and the Fed desk trading.

Zorba's idea's picture

Go suck an egg Jamie..hope you choke on it!

Grandad Grumps's picture

Maybe Dimon should resign if he cannot hack it!