The New York State Comptroller, Thomas P. DiNapoli recently issued a report showing that the securities industry in New York City “has returned to profitability faster than expected in the wake of the global economic recession.” The DiNapoli report is a review of major Wall Street firms and its economic impact on the City and the State. Moreover, the report discusses market trends and conditions, as well as trends and data related to profits, jobs and compensation.
One highlight from the report is that the four largest investment firms, Goldman Sachs, Merrill Lynch, Morgan Stanley, and JP Morgan Chase Investment Bank earned $22.5 million in the first nine months of 2009 compared to a loss of $40.3 billion during the same period last year. Another compelling finding is that the six major banks, Bank of America, Citigroup, Goldman Sachs, JP Morgan Chase, Morgan Stanley, and Wells Fargo are setting aside $112 billion for compensation and bonuses. With this extraordinary amount of money put aside for bonuses and compensation in a time of serious economic troubles, “some of these firms are on track to approach or even exceed their 2007 compensation levels.”
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