Total fixed income, currency, and commodity trading revenue fell to $3.33 billion below $4.28 billion earned in the prior quarter -but more than $3.12 billion this time last year. Meanwhile, equity trading increased to $1.42 billion from $1.22 billion in the second quarter and $1.14 billion at this point in 2010. Overall FICC trading revenue is up 6% and equity trading is up 11% 9 months into the year, when compared to 2010.

JPMorgan's shaky investment banking earnings numbers may be a harbinger of things to come as Morgan Stanley ( MS), Goldman Sachs ( GS), Citigroup ( C) and Bank of America ( BAC) all report earnings in coming weeks. For other investment banking divisions, falling revenue from operations may be erased by gains from widening credit spreads.

"Third-quarter 2011 has been a very difficult quarter for market making across the Street, particularly in FICC trading... We are currently forecasting the median bank's FICC revenues to decline 14% and equity trading revenues to increase 17% from 2Q11," wrote analysts at KBW ( KBW) in a September 26th note.

In a separate note written following JPMorgan's muted outlook for investment banking, Mike Mayo of CLSA wrote, "We think these lower activity levels will carry forward until the global economic and market outlooks improve."

If debt valuation gains based on widening bank credit spreads are readjusted to losses in coming quarters, management and analyst pessimism for investment banking revenue may actually be reflected in coming quarters.

-- Written by Antoine Gara in New York

If you liked this article you might like

The Federal Reserve Is Now Ready to Blow It All Up

Bank Stocks Move Higher Ahead of Federal Reserve Meeting

CEOs Focused on Tax Reform, Business Roundtable Survey Says

All Eyes on the Godfather of Central Banking as Fed Has Huge Meeting This Week

Chase Hires Amazon Customer-Service Exec as Digital's Rise Reshapes Branches