FAST FIVE: "The Last Two Weeks Have Been Quite Hard": Banks Sound The Alarm On Q2 Trading Revenue
Q2, which was diametrically opposite and where the market rose even more before sliding, and volatility finally awoke, is set to be.
We're not going to have a bad quarter in the securities business, but you've got to be realistic with the environment.” Morgan Stanley's generated $5.2 billion in institutional revenue in Q1, so despite the drop, the business is still likely to easily exceed $4 billion in revenue this quarter as its stability has increased in recent years, he said.
Despite the warnings, Gorman said he's “highly confident” Morgan Stanley will reach or surpass $4 billion to $5 billion in fixed-income trading revenue this year, even though he is troubled by the tone taken by the US and China in their trade dispute, noting that a full-on trade war could push the US into a recession.
Meanwhile, Goldman Sachs CEO David Solomon was more veiled, saying in a CNBC interview Tuesday that while the quarter has been “up and down,” he declined to give a forecast for the firm's trading revenue.
The largest US bank is also unlikely to escape unscathed – CEO Jamie Dimon warned previously that trading revenue has declined.