Oldspeak: “Wall Street is the 99%. In a case of chickens coming home to roost, a pothole was reported on Wall Street today with the prediction that 10,000 people working in the city’s securities industry will lose their jobs. In a report released Tuesday, Comptroller Thomas P. DiNapoli also said bonuses are likely to shrink this year, reflecting lower profits on Wall Street. But it is not all bad news. The report revealed the average salary in the industry jumped by 16.1 per cent last year to $361,330. This is in comparison to an average salary of $66,120 in the private sector.”
By Lee Moran @ The U.K. Daily Mail:
New York’s financial sector has been hit by a further setback – with the prediction that 10,000 people working in the city’s securities industry will lose their jobs.
The announcement, forecast for 2012, will mean a staggering 32,000 people in the city’s industry would have lost their jobs since January 2008.
But it may come as good news for the Occupy Wall Street movement – which has taken over the city’s Zuccotti Park to protest against corporate greed.
The news will pile even further pressure on New York’s battered economy, which is struggling to cope with the fall out from the European debt debacle and turbulence in the financial markets.
New York State Comptroller Thomas DiNapoli said in his 2011 statement: ‘The securities industry had a strong start to 2011.
‘But its prospects have cooled considerably for the second half of this year. It now seems likely that profits will fall sharply, job losses will continue, and bonuses will be smaller than last year.
‘These developments will have a rippling effect through the economy and adversely impact State and City tax collections.’
He said the securities industry had lost 4,100 jobs in August, wiping out many of the 9,900 job gains between January 2010 and April 2011.
According to the report, by the Office of the State Comptroller, securities-related activities accounted for one in eight jobs in the city.
It also represented 14 per cent of New York State’s tax revenues and nearly 7 per cent of New York City’s.
The report also said that each job gained or lost in the industry leads to the creation or loss of almost two additional jobs in other industries in New York City.
Mr DiNapoli added: ‘As we know, when Wall Street slows, New York City and New York State’s budgets feel the impact and that is a concern.’
A slew of financial services companies have disclosed plans to cut jobs in recent months, including Goldman Sachs, Bank of America, HSBC and Barclays.
Investment banks are forecasted to report big declines in third-quarter earnings in the coming weeks due to big trading losses in the financial markets.
Profits for member firms of the New York Stock Exchange are seen tumbling to $18 billion in 2011, marking a one-third decline from the year before.
The OSC said the expected new job cuts are due to the current debt crisis in Europe, the ‘sluggish’ domestic economy, turbulence in the stock markets and regulatory changes aimed at forcing banks to be less risky.
Like many analysts, the OSC said cash bonuses are expected to shrink this year, marking the second-straight year of declines.
But it is not all bad news. The report revealed the average salary in the industry jumped by 16.1 per cent last year to $361,330.
This is in comparison to an average salary of $66,120 in the private sector.
The protests against the state of the U.S. political and economic systems, which started with a handful of people, have now spread to more than 25 cities – from Sacramento to Seattle, Anchorage to Atlanta and Mobile to Minneapolis.
New York City Mayor Michael Bloomberg said he will allow Occupy Wall Street protesters to stay indefinitely at their Manhattan village – but suggested some have only camped out there because of the warm weather.
He also said demonstrators will only be allowed to stay in Zuccotti Park as long as they obey the laws.