Wall Street News

The largest American banks have recently experienced a sharp decline in fixed incomes. The case is that some bank giants are thinking about suspending this type of business and leaving Wall Street.

The financial analyst of the Wall Street Journal Dennis Berman thinks that Wall Street is missing. In fact, the principal banks of the United States have declined sharply over the past six years in terms of debt, currency and commodity trade (FICC). Statistics for the first half of 2016 speak for themselves: FICC Goldman Sachs in January-June amounted to $3,6 billion, 24 per cent less than in the first half of 2015; FICC Morgan Stanley $2,2 billion, 36 per cent lower than in the first half of last year; FICC Citigroup $6, 6 billion, remained at the one-year-old level; FICC Bank of America Merrill Lynch also remained unchanged at $4.9 billion. JPMorgan was the only major bank showing an increase in FICC in the first half of the year. It earned $7,6 billion on these financial instruments in the first six months of this year, 7 per cent more than in January-June 2015.

In recent years, FICC has indeed been in poor condition. Suffice it to say that the main banks recorded a 9 per cent decrease in this income category last year. Banks are in a very difficult position because FICC played an important role in their total income. Therefore, its sharp decline has had a negative impact on total income.

A small number of large financial companies, including Deutsche Bank, Credit Suisse, Goldman Sachs and Morgan Stanley, have reduced the number of personnel engaged in debt, currency and commodity trade. More banks and financial firms have decided simply to step away, albeit temporarily, from FICC. JPMorgan is an exception and therefore intends to pursue FICC.

" We invest heavily in this, the Executive Director of the banks, Jamie Dimon, emphasized in February. Most of our investment relates to the technical side of the case. "