Morgan Stanley, Citi Sound Warning Bell on Trading Slowdown
- James Gorman says ‘last two weeks have been quite hard’
- Citigroup CFO expects drops in trading and banking fees
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Wall Street executives continued to sound the warning bell that a slump in client activity has crimped trading and investment-banking revenue after a tough start to June.
“I’d be very surprised if we beat the first quarter,” Morgan Stanley Chief Executive Officer James Gorman said Tuesday at an industry conference in New York. “The last two weeks have been quite hard. Up until then, it was solid. We’re not going to have a bad quarter in the securities business, but you’ve got to be realistic with the environment.”