Wall Street banking revenue is in free fall, and here's why

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Fixed income, currencies and commodities trading declines hit Wall Street hard in a volatile first quarter.

Goldman Sachs reported first-quarter earnings Tuesday morning that while crossing a low bar also saw a 47 percent year-over-year drop in fixed income, currencies and commodities, or FICC, to $1.66 billion. It was part of a report that showed revenue growth tumbling 40 percent, from $10.62 billion from the year-ago period to $6.34 billion in the first three months of 2016.

With growing uncertainty on the horizon in the second quarter, the FICC struggle could continue. In part thanks to more central banks embracing negative interest rates, S&P Global Markets Intelligence equity analyst Kenneth Leon said more FICC pain could continue on Wall Street in 2016.

"If there were an area to come back, it would be equities trading first," he said.