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Wall Street is still fighting to recover from the financial crisis of 2008 - 2009, and according
to New York State Comptroller Thomas P. DiNapoli's annual report on wall street bonuses, the
securities industry had a mixed year with a strong first half but a very weak end to
the year. They lost 3 billion dollars in the 3rd quarter of 2011 - the first quarterly
loss since 2008. Cash bonuses are down for 2011, reflecting a difficult year on Wall
Street. Profits have declined sharply and securities firms have resumed downsizing the
second half of the year. Overall this was a difficult year as the industry adjusted
to a changing economic and regulatory environment. From April to December of 2011 Wall Street
shed 4,300 jobs in New York City and consolidated office space. In 2012 cash bonuses declined
by 14% to 19.7 billion dollars. Wall Street is still generating profits, however the level
of profitability is declining this year to approximately 13.5 billion dollars. The good
news is that New York City and New York State anticipated that, and budgeted for this decline
in Wall Street bonuses. There are signs that new financial regulations are having an impact.
For example, a greater emphasis on deferred compensation will spread out tax collections
over a number of years which will reduce volatility in industry tax-payments. Well certainly we're
seeing adjustments, it's important to keep in mind that securities industry continues
to be very important component of the New York City's and New York State's economy.
What we're seeing is a continued response to the financial crisis - the fallout from
that - and adjustments made as financial regulations continue to be implemented.