Citigroup warns of drop in trading revenue

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

Citigroup Inc chief financial officer Mark Mason warned that 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.