A combination of litigation issues and significant low downs in FICC trading doesn’t bold well for the banking sector in third quarter. Today, Deutsche Bank AG (DBK) indicating that third quarter revenue from investment banking will be lower as a result of fixed income trading. According to the Co-Chief Executive Office Anshu Jain, “We currently anticipate debt sales and trading revenues in the third quarter to decline significantly from last year.” The lack of tapering is hurt fixed income; lower interest rates are driving investors to equities. This is bad news for the bank because according to Bloomberg, fixed income trading last year accounted to a substantial percent of the total revenue of the bank. On Monday, it was Citigroup Inc (NYSE:C) who was hinting at lower revenues for the third quarter as result FICC (Fixed income, currencies, and commodities) trading weaknesses. Anybody see this trend continuing?