Wall Street Profits Soar During First Half of 2020
22 October 2020 - 11:59PM
Dow Jones News
By Kate King
New York's securities industry profits increased 82% in the
first half of this year, boosted by federal stimulus money and
falling interest rates, according to a report from the state
comptroller's office.
Pretax profits reached $27.6 billion in the first six months of
2020, the highest first-half haul since 2009, the report said. The
industry's profits for all of 2019 totaled $28.1 billion.
State Comptroller Thomas DiNapoli said in a news release that
the jump was due to the release of $2.4 trillion in federal
stimulus funding to stem the economic fallout from the coronavirus
pandemic, as well as falling interest rates, which reduced the cost
of borrowing. Higher trading volume also contributed, and Wall
Street firms' underwriting income increased more than 34%, to $17.3
billion, compared with the same period last year.
At the same time, the securities industry is expected to lose
7,300 jobs this year, equivalent to 45% of the positions added
since 2013, according to the comptroller's report. Last year, Wall
Street employment reached its highest level since the 2008
financial crisis, with 182,100 jobs.
The average Wall Street employee in New York City earned
$406,700 in salary and bonuses last year, compared with the
private-sector average of $82,900.
The securities industry is a significant contributor to the city
and state's coffers, although less so in recent years as firms
relocated to less-expensive areas and New York City diversified its
economy. Wall Street accounted for about 18% of state tax revenue
and 6% of New York City's tax collections last year, Mr. DiNapoli's
office said.
Write to Kate King at Kate.King@wsj.com
(END) Dow Jones Newswires
October 22, 2020 08:44 ET (12:44 GMT)
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