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The Swiss flag flies over the headquarters of Credit Suisse in Zurich. The bank has set up a joint venture with high-frequency trader Tower Research to outsource some transactions in U.S. Treasuries and interest rate swaps.
The Swiss flag flies over the headquarters of Credit Suisse in Zurich. The bank has set up a joint venture with high-frequency trader Tower Research to outsource some transactions in U.S. Treasuries and interest rate swaps.
(ARND WIEGMANN/REUTERS)

Wall Street waking up to reality about fixed-income business

Wall Street may finally be getting the joke about trading. Citigroup , JPMorgan and other banks estimate that second-quarter revenue in fixed income, currency, and commodities will drop – again – by perhaps a fifth. Shareholders reckon it’s a long-term slump. Brokerage executives may publicly claim otherwise, but a recent move by Credit Suisse acknowledges that the business is fading.