U.S. Bank Revenue Falls 5% in OTC Derivatives Trading
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U.S. commercial banks earned $7 billion in revenue by trading over-the-counter derivatives and securities in the first quarter, down 5 percent from the year-earlier period as credit trading slowed.
Banks lost $784 million in credit trading for the three months ended in March, compared with a gain of $1.7 billion in the first quarter of 2011, the Office of the Comptroller of the Currency said in a release today. The U.S. agency said its main measure of credit risk in derivatives markets, the so-called net current credit exposure, fell 12 percent, or $53 billion, to $377 billion.