JPMorgan Chase could be hurtin’ without Blythe Masters.
The biggest bank in the US is projecting its trading revenue will fall 20 percent in the current quarter from last year, according to a regulatory filing on Friday.
JPMorgan is missing out on a gain in prices of oil and other assets after it sells its commodities unit, which was helmed by Masters, said Marty Mosby, an analyst at Guggenheim Partners.
“Is this more of a permanent shift, or will you see a snap back?” Mosby said.
Masters is reportedly under investigation by federal prosecutors. The probe was opened after the bank settled allegations it manipulated energy prices in California and the Midwest. The bank didn’t admit or deny wrongdoing.
JPMorgan announced in March that it was selling its commodities trading business to the Swiss Mercuria Energy Group for $3.5 billion.
During the second quarter last year, the bank rang up $3 billion in trading revenue in fixed income and equities, placing the estimate for the current quarter at $2.4 billion.