Wall Street bankers and traders, given hope by a market rebound
in the first quarter, are now seeing earnings and paychecks threatened by
turmoil in Greece in what is becoming an annual cycle.
For a third consecutive year, revenue from investment
banking and trading at U.S. firms may fall at least 30 percent from the first
quarter, Richard Ramsden, a Goldman Sachs Group Inc. (GS) analyst, said in a
note last week. Greece, which gave English the word “cycle,” has been the main
reason each year that the second quarter soured after a promising first three
months.
Deal volume has dropped and equity and credit markets have
fallen on concern that Greece may abandon the euro and the European sovereign-debt
crisis will spread to nations including Spain. Those economic issues cut
profit, bonuses and jobs at Wall Street firms in last year’s second half and
threaten to do the same in 2012....
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