Investment banking’s golden years look done for now

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JP Morgan and Morgan Stanley both reported big falls in investment banking revenue in the June quarter, as uncertainty puts the brakes on deals.

JP Morgan chief executive Jamie Dimon and Morgan Stanley boss James Gorman are two of the most experienced and influential figures on financial markets. Which makes their decidedly uncertain view of what’s coming for the global economy slightly disconcerting.

The Melbourne-born, Collingwood-supporting Gorman, succinctly described the environment as complicated. But like Dimon, he was quick to point out these are not GFC-like conditions.“I think it’s important to say, though, it is not 2008 complicated. We’re in specifically much better shape….We’re frankly guessing at this stage but I think it’s unlikely to be a deep and dramatic recession in the US.”

“The speed in the market movement, and the speed in price discovery has caused people to stop,” Yeshaya told Bloomberg. “It’s unclear if sellers have yet digested those prices.”

 

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