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Wall Street Revenue Seen Plunging on Inflation, Recession Fears

  • JPMorgan sees investment-banking fees declining by half
  • Citigroup says trading revenue to fall in current quarter
A worker enters Citigroup headquarters in New York.

A worker enters Citigroup headquarters in New York.

Photographer: Juan Cristobal Cobo/Bloomberg
Updated on

Wall Street giants are forecasting deep declines in investment-banking fees for the current quarter with investors still spooked by inflation, Federal Reserve interest-rate hikes and the potential for a recession. 

Citigroup Inc. Chief Financial Officer Mark Mason warned the fees his bank collects from deal making and capital markets origination are likely to plummet 50%, in line with the broader slowdown hitting Wall Street. That mirrors earlier comments from JPMorgan Chase & Co., which said investment-banking fees may fall by half as clients stay on the sidelines.