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Wall Street broker-dealer profits in 2016 to exceed last year's: watchdog
[NEW YORK] Wall Street broker-dealer profits for the full year are on track to surpass that of 2015 and could end three years of consecutive declines in the industry, according to a report on Friday by New York state Comptroller Thomas DiNapoli.
That full-year performance is likely even though profits of US$9.3 billion in the first half of 2016 are down 18 per cent from a year ago, the New York financial watchdog said.
Since March, job growth has slowed in the securities industry in New York City. In August, there were 2,600 fewer jobs than in March.
Also, bonuses could decline for a third consecutive year in 2016, the report found. The amount set aside by the member firms of the New York Stock Exchange for compensation in the first half of 2016 was 7 per cent less than the same period last year.
The securities industry in New York City has shrunk since the financial crisis of 2007-2008. The sector comprised 11 per cent of all private sector wage growth between 2010 and 2015, compared to 39 per cent between 1990 and 2007.
In 2015, New York City represented 19 per cent of securities industry jobs in the United States, down from 32 per cent in 1990, the report said.