The collapse in volatility is finally trickling up to the big banks.

Moments ago, JPM CFO Marianne Lake speaking at a Deutsche Bank conference in New York, warned that contrary to expectations for an ongoing rebound in revenue and profits, the bank's second quarter revenue has been 15% lower from a year ago. And while she said that US economic figures are "solid, not stellar", she blamed the same thing that has been the nightmare of daytraders everywhere: collapsing volatility. 

From the newswires

• JPMORGAN 2Q MARKET REVENUE HAS BEEN DOWN ABOUT 15 PERCENT FROM YEAR EARLIER, CFO SAYS
• JPMORGAN CFO SAYS MARKET REVENUE LOWER ON LOWER VOLATILITY THAN YEAR EARLIER
• JPMORGAN CFO: LOW RATES, LOW VOLATILITY HAVE LEAD TO LOW CLIENT FLOWS
• JPMORGAN CFO: DOESN'T SEE REASON 2Q TREND WOULD CHANGE IN JUNE

It wasn't just JPM: while it did not give a specific range, Bank of America CEO Brian Moynihan also warned that Q2 trading revenues will be lower than a year ago.

• BANK OF AMERICA 2ND QTR TRADING REVENUE WILL BE LOWER THAN A YEAR AGO, CEO SAYS

The news has hit the bank sector, which was not expecting this early guidance cut, with Goldman sliding more than 2% in early trading.

And with absolute yields levels plumbing 2017 lows and the yield curve at its flattest in 8 months...

Bank are getting hit by a double whammy of not only the flattening yield curve, but the prospect of lower revenues.

(Click on image to enlarge)

It is still not too late sell in May...