Investing
Wall Street Revenue Seen Plunging on Inflation, Recession Fears
- JPMorgan sees investment-banking fees declining by half
- Citigroup says trading revenue to fall in current quarter
A worker enters Citigroup headquarters in New York.
Photographer: Juan Cristobal Cobo/BloombergThis article is for subscribers only.
Wall Street giants are forecasting deep declines in investment-banking fees for the current quarter with investors still spooked by inflation, Federal Reserve interest-rate hikes and the potential for a recession.
Citigroup Inc. Chief Financial Officer Mark Mason warned the fees his bank collects from deal making and capital markets origination are likely to plummet 50%, in line with the broader slowdown hitting Wall Street. That mirrors earlier comments from JPMorgan Chase & Co., which said investment-banking fees may fall by half as clients stay on the sidelines.