Apparently, our beloved men of banking industry, the hands of God, aren’t thrilled by this wave of low volatility, new record highs, type of market. As a matter of fact, the low octane market has led to investor apathy, fuckers mailing it in — collecting all sort of wins for doing nothing.
Markets that heretofore enjoyed ‘idiosyncratic’ events were adored by Goldman, Morgan and the like, cravenly and without regard for common decency, preyed on the weak — relieving them from their currency.
Good for Main Street is wretchedly bad for Wall Street
“Volatility hasn’t been that great actually — it’s made for a very tough slog,” Eric Wasserstrom, a banking analyst at Guggenheim Securities LLC, said Wednesday on Bloomberg Television. Still, “I don’t know if we really want to be rooting for political dislocation as something that really helps the investment banking community.”
JP Morgan markets revenues are in a woeful tailspin, off by 15% in April and May (YOY) due to a harrowing decline in bond trading. Without the need for credit default swaps to hedge bets, the catamites at JP Morgan have been doing a lot of box watching instead of, ostensibly, marking up their clients. The same sordid decline is being endured at Bank of America, in the magnitude of -10 to -12%, while Goldman only admitted that trading was ‘subdued.’
“There haven’t been that many idiosyncratic events, and we need a few more of them,” Lake said. “As a sweeping generalization, low rates, a more cautious outlook on rates, and low volatility have led to low client flows and a generally quiet, subdued and challenging trading environment.”
The CEO of Morgan Stanley, John Gorman, reflecting on the rancid Bank of America numbers, said his firm was in a similar ‘fag-box’, stating that the troubled at JP Morgan and Bank of America “are reflecting reality and I don’t think we’re very different.”
Debt issuance has been a problem on Wall Street, with nearly a 7% decline in America and -18% in Europe, while emerging markets were flat. New loans dropped by a heart attack rate of 28%, globally, according to Bloomberg.
Because of this, coupled with a flattening yield curve, shares of Wall Street’s big banks have slumped. Goldman is down 15% over the past 3 months, while Morgan Stanley shed -9%, JP Morgan -10%, WFC -12% and BAC -10%.
What Wall Street needs is a good olde fashioned market calamity.
Stay tuned.
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