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JP Morgan Chase begins a critical reporting season for banks which will have less money in the pot Wall Street bonuses as profits slide.

The Bank American, which fared better most since the beginning of the financial crisis, is scheduled to report third quarter $3 8bn (￡ 2 support), or 90 cents per share earnings Wednesday, compared to $8bn analysts or $1.09 a share in the second quarter.

Summer has proved difficult for commercial banks on both sides of the Atlantic as the deepening uncertainty on reduced global recovery investor risk appetite divisions.

Trade volumes is equity and bond markets fell in the quarter, while the lucrative rights of mergers and acquisitions should also fell. Completed mergers declined 14pc in the second quarter, according to the company research, Dealogic. Meanwhile, increased sales of business liaison, banks handle, it is planned to have helped offset a sharp drop in the costs generated by helping companies to sell shares.

"Await us third-quarter results will be marked by generally lower levels of customer flow and a large slowdown in levels of activity," said Howard Chen of Credit Switzerland.Who will smite the premiums paid to banks and retailers.For example, Mr. Chen provides that Goldman Sachs to set aside $3 taken as compensation for the quarter, compared to $3 8bn in the quarter précédent.Morgan Stanley, should also, by Mr. Chen reduce his total earnings for the period from 15pc $3 United.

Net profit banking recovery and the return of premiums bumper to stir public opinion and the United States the United Kingdom last year.But with the wind of the equity market rally already fade, prospects for Central Wall Street lies largely with the question of whether a recovery of the economy American can be relaunched the FileSystemWatcher Wall Street shot to fame in component correctly according to Jason Goldberg, an analyst at Barclays Capital.Certains, including Meredith Whitney - crisis Citigroup are already predicting a new wave of job cuts in 2007 - that banks are obliged to reduce.

As well as the size of Wall Street bonuses, investors are hungry information Bank of America, Citigroup and JPMorgan Chase on two issues critical for the next 12 months for banks and the wider economy: is there is the appetite for companies to borrow and the impact of the new financial regulation.

Brian Moynihan, CEO of Bank of America, said that its large customer to 30pc just of revolving credit facilities compared to the 40pc when the economy is growing faster.

Richard Ramsden, which follows the American banks Goldman in New York, stated that "the face of banks headwind long-term more large continuous CAU withdrawal".Peu expect demand for loans companies recover until the US labor market is.

Whereas the agreement Basel III on the new capital requirements was allowed, how regulators will be implementing Act Dodd-Frank - the Act on financial reform signed into law this summer - remains a cloud over the banks.

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