Citi in trading warning

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Equities and fixed-income are challenging.

Citigroup Chief Financial Officer John Gerspach said second-quarter trading revenue could be down 20% to 25% from year-earlier levels in a market he described as 'becalmed'.

Bloomberg News reports that the decline might curtail overall institutional revenue for the period, Gerspach, 60, told analysts and investors Tuesday. He spoke during an investment conference in New York, where the bank has its headquarters.

The market feels like participants are 'sitting on the sidelines', Gerspach said, referring to both fixed-income and equity trading. 'There isn’t a lot of direction'.

Gerspach’s outlook is more dire than at JPMorgan, which said in a May 2 regulatory filing that trading revenue will drop about 20% from a year earlier amid 'a continued challenging environment and lower client-activity levels'.

To access the complete Bloomberg article hit the link below:

Citigroup's CFO Says Trading Revenue Could Slide 25%

Ex-Goldman Sachs Trader Tourre Says He Won't Appeal 

 

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