Wall Street’s profits hit $11.3 billion in the first half of the year, the strongest gains since 2011, and a sign that New York City’s securities industry should finish with a strong year, a report Tuesday found.
The stock market had its ups and downs recently but Wall Street profits and salaries were still on the rise during the first half of 2015, according to a new report.
DiNapoli issued a report on the state of the securities industry Tuesday.
Wall Street has been shrinking since the financial crisis in 2008, and is still 9 percent smaller than it was in 2007, but those who still have jobs are reaping the dividends.
While Wall Street is digging its way out of the regulatory rubble, the banks will continue to hire more lawyers and compliance personnel “in order to avoid future litigation”, DiNapoli said.
The average salary in the industry including annual bonuses grew to $404,800 or by 14 percent in 2014. And, for each position it creates, another job is added elsewhere in the state.
“After a very strong first half of the year, the securities industry faces volatile financial markets and an unsteady global economy”, DiNapoli said.
Industry performance was measured by the results of the broker/dealer operations of New York Stock Exchange members.
The state comptroller monitors the securities industry because of its importance to state and city tax revenue as well as to the local economy.
Here’s another way to conceptualize how much Wall Streeters get paid: although the finance industry accounts for less than 5% of the New York City’s private-sector workforce, it accounts for 22% of all wages paid in the city.
After inflation, 2014 was the third highest year on record.
By comparison, the average salary in New York City outside the securities industry was $72,300 a year ago.
During the recent recession, huge losses on Wall Street prompted higher taxes, fees and reduced services in the state budget. The average bonus increased by more than 50 percent over the past three years; · Non-compensation expenses, which include the cost of legal settlements, declined by 12 percent in the first half of 2015.