Citigroup Shows That Banks Can’t Depend on Traders
Wall Street continues to see few market opportunities as stocks grind to record highs.
Tame volatility isn't doing banks any favors.
Photographer: Mark Kauzlarich/BloombergIt’s a tough time to be a trader on Wall Street. (Cue playing of the world’s smallest violin.)
That much was clear after Citigroup Inc. reported its second-quarter earnings on Monday, kicking off a week that will reveal the financial health of the biggest U.S. banks. Trading revenue fell about 5% after excluding the one-time windfall from the bank’s stake in Tradeweb Markets, which went public in April and bought out Citigroup’s equity holdings. That drop was bigger than expected. The bank’s equity markets revenue was particularly disappointing at $790 million, compared with estimates of $824 million. Chief Financial Officer Mark Mason also cited a challenging trading environment in fixed income, currencies and commodities.