RBC's Cassidy Says Bank Trading Activity Has Been Low

The video discusses the stability and challenges in bank returns on equity since 2013, focusing on the impact of low interest rates and trading income. It highlights the reduced trading activity in universal and investment banks like Goldman Sachs and Morgan Stanley due to lower volatility and customer turnover. The discussion anticipates continued challenges in trading revenues, particularly in FICC and commodity trading, unless market volatility increases.

What has been a significant factor in the stable yet unexciting return on equity for banks since 2013?

• Rising customer turnover

• Increased trading income

• Federal Reserve's static interest rate policy

• High interest rates

Which factor has contributed to the lower trading activity in banks like Goldman Sachs and Morgan Stanley?

• Increased customer turnover

• Higher market volatility

• Lower market volatility

• Rising interest rates

What was the expected percentage drop in FICC trading revenues for banks?

• 10% to 15%

• 5% to 10%

• 15% to 20%

• 20% to 25%

What area of trading is Goldman Sachs particularly known for?

• Commodity trading

• Real estate trading

• Equity trading

• Cryptocurrency trading

What do banks need to increase trading volumes according to the discussion?

• More customer turnover

• Lower trading fees

• Higher interest rates

• Increased market volatility