A bad year for Wall Street just got a whole lot worse, the NY Post reports. New York City’s Independent Budget Office estimated yesterday that Wall Street bonuses for 2011 fell by a whopping 25 percent to $17.8 billion — nearly double the drop projected last week by New York State Comptroller Thomas DiNapoli. Average cash bonuses for financial workers fell 14 percent to $19.7 billion, according to DiNapoli’s report.
The projections draw on the same data, making it tough to explain the gap. The city and state closely monitor the financial industry’s annual windfall because of its significant impact on tax collections. Despite the dueling estimates, everyone agrees that bonuses took a hit because of tougher financial regulations and choppy markets.
“Our forecast is now taking into account [the] changing regulatory environment in the financial sector, the effects of which can be seen in the differences with our projections from just a few months ago,” said IBO director Ronnie Lowenstein. Lowenstein’s office is estimating that Wall Street’s profits for 2011 will be well below the market’s peak of around $10.5 billion…
Find out more at http://www.nypost.com/p/news/business/city_outlook_for_wall_street_turns_sTjwtIIZgeqz9yDwmbB2dL
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