JPMorgan, BofA See 15% Plunge In Trading Revenues; Blame "Lack Of Volatility, Excitement"

Tyler Durden's picture

Stop us when you've heard this before... and you've heard it exactly two times in the last two quarter: both Bank of America and JPMorgan warning their revenue will be down double digits year over year because volatility is so low, and traders are so paralyzed, there is much less money to be made trading either flow or prop, or simply from collecting commissions.

Well, today marks the third time in the last three quarters when both JPMorgan and Bank of America both said - again - that there hasn’t been a rebound in the relentless slump in trading revenue.

Speaking at an investor conference in New York on Tuesday, JPMorgan CFO Marianne Lake said that revenue from trading has dropped 15% so far this quarter compared with the same period a year ago, while Bank of America CEO Brian Moynihan gave the same decline for his firm. Both said the business faces a difficult comparison to last year, when activity spiked after Donald Trump’s surprising presidential election win.

Commenting on the ongoing deterioration in bank revenues, Lake said that “there hasn’t been that many catalysts, it hasn’t been that exciting,” Lake said. “Volatility sill remains pretty low across the spectrum; it’s a very competitive environment.”

Lake spoke alongside Goldman Sachs CFO Marty Chavez and BofA COO Tom Montag, who said at a conference last month that the languor that has plagued their trading businesses in the last two quarters has persisted into the fourth period. According to Bloomberg, Chavez said his bank’s commodities unit is on pace for its worst year in the firm’s history as a public company.

With traditional revenue streams clogged, banks are forced to come up with alternatives. Sure enough, JPM claimed that the lack of volatility hasn’t been a problem in the bank's corporate and investment bank, where fees should rise in the “high single digits” as activity levels have been healthy, Lake said. And, if passed, the proposed U.S. tax changes should continue to help that business, Lake said.

Clearly markets aren't too worried, with JPM stock soaring to all time highs, and BofA trading at pre-financial crisis levels.

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MrBoompi's picture

Good.  This means there is more blood left in the host for a change.  

Killtruck's picture

Lack of volatility? Well, have I got a crypto for YOU, Jamie!

shitshitshit's picture

if he doesn't blame bitcoin, that must be bad bad bad

JRobby's picture

lack of excitement

That might last.................

Bunga Bunga's picture

Blame the millennials. Bitcoin is now the new favorite investment vehicle for people age 18 to 34, rather than stocks, according to a survey from Blockchain Capital, a venture capital firm. About 30% of millennials said they would prefer $1,000 worth of Bitcoin over $1,000 in government bonds or stocks, Bloomberg reported.

Sorry boomers, your retirement funds will have a hard time.

Juggernaut x2's picture

Why even have "desks" and the associated costs? Jamie Diamond can just sit at home in his jammies and buy SPX and QQQ using ScottTrade.

LawsofPhysics's picture

LOL!!!  Well, they would know.  Still, let's see what their trades were motherfuckers, I sure they have "winning" trades far more often than the average "investor"...

"Full Faith and Credit"


Since we are on the subject of JPM, does anyone know what that stinky cunt Blythe is up too? Inquiring minds want to know.

Killtruck's picture


I was wondering this myself the other day when I thought about her creaming her slacks over the upcoming BTC derivatives. Where DID she slither off to? 

spastic_colon's picture

yes......competing with the fed thru your own fed prop desks must be nail biting.

buzzsaw99's picture

every time you make a move you get lloyd and jamie's thumb up your butt.  remember that.

just the tip's picture

aw fuck, i can't unread that.  squirmed in my seat a bit i did.

KnuckleDragger-X's picture

All that "money on the sidelines" will be rushing in...any time now...

lester1's picture

None of these banks and hedge funds can compete with the  unaudited Federal Reserve's PPT buying up everything!

LawsofPhysics's picture

Hey dipshit, JPM is a primary dealer bank, they are "The Fed"!!!!

Atomizer's picture

No dipshit, the Federal Reserve creates money out of thin air. Where you sleeping when we started Operation Twist. Then moved to Quantitative Sleazing? Now the Federal Reserve is trying to unload MBS on ledger. No different than SIV or CDO toxic waste portfolio. Wake up dumbfuck. 

LawsofPhysics's picture


...and precisely who are the owners of the Fed again?


what a maroon!!!!

Yellow_Snow's picture

= Mour Government Bailouts, Please...

coast1's picture

what about gold manipulation?  who is doing it?   Here is correspondence I had with Jim Wille...Dont know, just sharing thoughts...

My email to Jim WIllie that I copied partially from a poster on ZH:

China and Russia are not the good guys either. In fact, China and Russia are only playing good cop, bad cop with their partners, the Americans and the Europeans.

China, like Russia, is not pro-gold and acts in collusion with the COMEX and LBMA to suppress the price of gold. When gold goes up in price, it will be against the will of the Chinese, the Russians and the Indians.

The BRICs are all IMF member countries and are thus forbidden to monetize gold, or link their currencies to gold, or use gold as a trading or exchange mechanism:

Jims response: China has used back channels to move 30,000 tons from London

all done off market

you missed this huge essential point

Voice was part of the removal project from March 2012 to Oct 2014

no effect to gold price when supply comes from Vatican vaults

my response: agree...I am weird and think of weird things :-)  why did silver go to almost 50 dollars?  maybe to see what would happen if they did not manipulate it with paper?  a test? :-)   Jims response: temporary lost control

market rigging requires constant care

JibjeResearch's picture

Fuck JPMorgan and China Central Bank... , and all the Gold standard

I am Megatron, cryptocurrency is freedom for the bottom ..90% of global population.....

Now go get some..., you fools...


MadHatt's picture

Gotta blame something.... without that people might lose confidence in the paper currency that will always be worth less a year from now.

Keeping that image alive through lies.

tropicthunder's picture

They are obviously not humping the fuck out of Bitcoin then. Otherwise they would be making SQUILLIONS of FAKE FIATS!!

Ink Pusher's picture
 "Lack Of Volatility, Excitement"...


Atomizer's picture

That's because your derivatives market is upside-down. Thank President Bill Clinton in removing Glass-Steagall. Quant trading is finding pennies under couch pillows. You turned yourself into a OTC market clearinghouse. 

insanelysane's picture

It's only natural.  As all of the algos grow wiser volatility should approach zero.

RedDwarf's picture

There's no volatility because there is no more free market.  Most equities are bought with printed money going through HFT's and legally tied major investors like pension funds.

Now, in crypto-land we have lots of volatility.  This is in fact one of the reasons cryptos are going to go to the moon.  Traders will go where the action is, and now the only action worth talking about is in the crypto markets.  This will produce massive price inflation due to a massive influx of additional fiat into the system.

Quant Jockey's picture

Just wait until Dec-10. Once Bitcoin futures start trading, everything will be A-OK.

koan's picture

*cough* Bitcoin *cough*