New York Comptroller Thomas DiNapoli predicted that the New York City securities industry will make 37% less profits than last year, with repercussions for professionals and tax revenues.
The New York City financial industry managed a strong $23.9 billion profit in 2012, the third highest on record, DiNapoli said. DiNapoli anticipated that industry will reap a $15 billion profit this year.
"While total compensation for broker/dealer operations increased by 5.5 percent in the first half of 2013 — suggesting bonuses might be higher in 2013 — recent developments have cast doubt on this outlook," DiNapoli said.
New York State government depends on Wall Street tax revenues more heavily than does New York City government. In fiscal 2012-2013 revenues from the securities industry accounted for 16% of the state's revenue, down from pre-recession levels of 20%. By comparison, the industry accounted for 8.5% of New York City's revenue in the last fiscal year.
DiNapoli noted that the industry paid 22% of all private sector wages in New York City, even though it employs 5.1% of all private sector workers.
