WASHINGTON - Trading revenues plunged 21% at commercial banks in the second quarter to $3.03 billion, but that is still a huge figure. The quarterly revenue record was set in the first quarter at $3.84 billion.
According to the Office of the Comptroller of the Currency's quarterly derivatives report released Wednesday, interest rate swaps accounted for the bulk of the $800 million decline. Swaps revenue dropped almost 42%, to $993 million in the second quarter, while revenue from foreign exchange contracts dropped $2 million, to $1.3 billion. Revenue from equity, commodity, and other trading activities increased $19 million, to $1.05 billion during the quarter.