JPMorgan Q3 trading revenue on track to fall 30 percent

NEW YORK ― JPMorgan Chase & Co’s trading revenue is on track to fall 30 percent this quarter from the second quarter, the bank’s investment banking head said on Tuesday.

Investment banking fees could be about $1 billion, said JPMorgan’s Jes Staley, compared with $1.9 billion in the second quarter.

The European debt crisis and the battle over the U.S. debt ceiling weighed on multiple markets, reducing the value of securities that banks hold in their trading inventories. Trading volume was strong for some products, but mainly in markets where margins are slim for the Wall Street firm, like U.S. Treasuries.

Lower market levels also cut into asset management revenue, and the bank is on track to report a modest loss in its private equity business, Staley said.

Staley is widely seen as a possible successor to Chief Executive Jamie Dimon. The investment bank that Staley oversees is the largest of JPMorgan’s six business segments.

Speaking at a Barclays Capital conference in New York, Staley said the bank is “not worried” about its European loans. JPMorgan is the second-largest U.S. bank with $2.2 trillion of assets.

JPMorgan is usually the first major U.S. bank to report quarterly earnings. Results are next due in October.

JPMorgan shares were up 1.2 percent to $32.81 in late Tuesday morning trade. They are down about 22 percent for the year so far.

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