...Volatility Impacts Results: A spike in volatility during the quarter dragged down overall capital markets results for the five banks included in this report. Strength in advisory and equity trading was far outweighed by weakness in fixed income sales and trading and underwriting revenues. Quarterly Earnings Tied to Business Model: Overall quarterly earnings, inclusive of capital markets revenues, were stronger at the universal banks than at the investment banks, of which GS and MS reported less quarterly pre-tax income than in the same period a year ago. This decline reflects the higher relative reliance on capital markets revenues at GS and MS than BAC, C and JPM. Full-Year Results Still Strong: Despite a challenging final six weeks of the year, record earnings during the first part of the year contributed to the highest full-year results since 2009. Capital markets revenues for the five banks included in this report totaled $107 billion in 2018, approximately 4% higher than in 2017, aided...
