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With the potential for the Federal Reserve to cut interest rates as soon as this September, there may be added hurdles for investment banking to keep profitability high even after several banks reported positive second quarter results.

CFRA director of equity research Ken Leon joins Market Domination to discuss the state of investment banking and how these big banks may operate moving forward in current and future interest rate environments.

On sustainability of growth for investment banking, Leon comments: "We hit the trough for investment banking fees last year, probably in July. We're still at just the beginning of a rebound, but saying that, the first quarter, first half of this year had record results for debt cap, debt underwriting. But equity underwriting and IPOs, are still really in early innings of recovery. And keep in mind, there's two major sources for deals: one is obviously corporates, but the one that has not been participating as it tries to figure out valuation with rates is financial sponsors."

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This post was written by Nicholas Jacobino