Wall Street banks likely stung again by bad bond-trading quarter

NEW YORK: Wall Street banks have had another rough quarter in bond trading thanks to the U.S. Federal Reserve, and it might get worse before it gets better.

Analysts have begun cutting third-quarter profit estimates for banks including Goldman Sachs Group Inc and Morgan Stanley , citing an industry-wide fixed-income trading revenue decline of 20 to 30 percent compared with a year ago. The quarter's lull has made at least some Wall Streetprofessionals nervous that a fresh round of job cuts may be coming, a trader said.