Wall Street Banks See Drop in Fees as Dealmaking Slows, Awaiting Fed Clarity

Wall Street banks see a 2% drop in investment banking fees in Q3 compared to a year ago, despite "green shoots" talk.

Morgan Stanley took biggest hit with 27% decline in investment banking revenue. CEO cites deals likely materializing in 2024.

IPO market slowed in September after some high profile launches. Banks see sluggish deal activity continuing.

Trading revenue up slightly, helping offset investment banking weakness.

Banks waiting for Fed to signal done with rate hikes, expecting activity to pick up after that.