FAST FIVE: "The Last Two Weeks Have Been Quite Hard": Banks Sound The Alarm On Q2 Trading Revenue

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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.

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