News Formal

Breakingviews - Investment bankers wait for the axe to fall

  • 📰 Breakingviews
  • ⏱ Reading Time:
  • 46 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 22%
  • Publisher: 51%

Italia Notizia Notizia

Italia Ultime Notizie,Italia Notizie

JPMorgan and Morgan Stanley reported big drops in their dealmaking revenue. Fees halved, year-on-year, and the trading boost that offset them isn’t reliable. Banks aren’t yet talking about lay-offs, but such painful trade-offs look inevitable. johnsfoley

, where the run-rate of $6.6 billion in annual investment banking revenue pales next to 2019’s $7.6 billion.

So far, the slump has been more than offset by lively markets. Revenue from flipping stocks and bonds rose 15% at JPMorgan in the second quarter, year-on-year, and over 20% at Morgan Stanley, towering over shrunken deal fees. Trading and investment banking sit in the same divisions at both firms. But revenue derived from shifting securities is likely to go back roughly to where it was, especially as volatility in the bond market subsides.

Banks may be kind even if things don’t improve. With other parts of the business doing well, there’s still enough to go around. JPMorgan raised its estimate of how much it will make in interest on its lending activities on Thursday. Morgan Stanley has a wealth business that’s still generating a healthy profit. But it’s unlikely those divisions will want to subsidize dealmaking colleagues for long, despite the rainmakers’ efforts in happier times.

 

Grazie per il tuo commento. Il tuo commento verrà pubblicato dopo essere stato esaminato.
Abbiamo riassunto questa notizia in modo che tu possa leggerla velocemente. Se sei interessato alla notizia puoi leggere il testo completo qui. Leggi di più:

 /  🏆 470. in İT

Italia Ultime Notizie, Italia Notizie

Similar News:Puoi anche leggere notizie simili a questa che abbiamo raccolto da altre fonti di notizie.

Morgan Stanley Misses Analysts' Profit Expectations on Worse-Than-Expected Investment BankingWall Street banks are grappling with the collapse in IPOs and debt and equity issuance this year.
Fonte: nbcsandiego - 🏆 524. / 51 Leggi di più »

Morgan Stanley falls short of earnings estimates, shares dropMorgan Stanley undefined shares fell 1.8% in premarket trades Thursday after the bank said its second-quarter net income fell to $2.5 billion or $1.39 a...
Fonte: MarketWatch - 🏆 3. / 97 Leggi di più »