JPMorgan, Morgan Stanley earnings bode badly for Wall Street dealmakers

Both lenders attributed the slump to the challenging macroeconomic environment, including soaring volatility sparked by the conflict in Ukraine

Fears that investment banking would take a big hit across Wall Street in the second quarter looked to be confirmed on Thursday, with JPMorgan Chase & Co and Morgan Stanley reporting that revenues in that business more than halved.

JPMorgan investment banking revenue was $1.4 billion, down 61% on the year-ago-quarter, largely driven by a 54% drop in fees across all products, while the bank also took markdowns on some loans in its investment banking businesses of approximately $250 million in revenue.

Morgan Stanley reported a 55% fall in investment banking revenues to $1.1 billion with the bank's advisory business taking a