Wall Street Profits Soar To $50B, Bonuses To Rise Up To 40 Percent

In a clear sign of Wall Street's rebound, investment firms are producing record profits this year and the average bonus could rise as much as 40 percent over 2008.

Wall Street firms produced $49.7 billion in profits in the first nine months of this year, a huge turnaround from the previous two years. The industry lost $42.6 billion in 2008 and $11.3 billion in 2007 -- according to a new report from New York State comptroller Thomas P. DiNapoli.

"Profitability has soared because revenues rose while the costs of doing business - particularly interest costs - declined," concluded DiNapoli. In addition, Wall Street has cut costs by continuing to shed jobs, losing 29,300 between November 2007 and October 2008.

In a twist emblematic of the Darwinian nature of Wall Street, those bankers who survived the mass layoffs are due to get huge bonuses outstripping last year's payments. DiNapoli notes:

"The average bonus could grow at an even higher rate since there are fewer jobs than last year (some analysts estimate that the average could increase by up to 40 percent)."

Meanwhile, in a sign of the disparity between Wall Street and Main Street, the rest of New York City continues to suffer, according to the report, which notes that industries are still hurting and that the recovery is "expected to be slower" in the city than in the nation as a whole.

Read the report:

rpt16-2010 -

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Comments

[invest in jobs]

09:53 AM on 12/20/2009

Goldman and Bank of America run the markets along with Geithner, and beagle boy Ben. There
are no free markets, only welfare capitalism and socialism for capitalism.

hat tip to: http://financeopinionss.blogspot.com
Small biz need to apply. Too big to fail & too small to succeed is the govt. moto

[vippy]

06:28 PM on 12/19/2009

We voters should be so angry!!!! Imagine the Lehman Bank that went bankrupt now got approved for 50 million in bonuses to their failures of managers. If that does not upset everyone of us then I don't know what. How about the little person working for them, did they even get their last paycheck?
How does one get a bonus for wrecking a company, we are indeed topsy turvy and totally detached from reality! This is robbery!

[invest in jobs]

09:59 AM on 12/19/2009

The most pressing concern is now that these banks are paying back TARP they can be allowed to fail again at tax payer expense
hat tip to http://fianceopinionss.blogspot.com/

Too bad Washington is ineffective at regulating wall street because Wall Street bought congress

[daveschwartz007]

07:24 AM on 12/19/2009

CDs and Government bonds are a joke. Interest rates are artificially low. 1% on a 1yr CD? 3.5% on a 10yr bond. 401ks are a scam but the idea was good. Money you put in is tax deferred and lowers your taxable income and if company matches contribution like getting free money.
Only way to succeed in life is by accepting and taking risks. We have become risk adverse whiners either dependent on gov't handouts(social security,medicare,welfare,unemployment) or dependent on some boring, worthless, deadend corporate job.

Everyone is to blame for the mess we are in and if we don't stop spending money we don't have we will all become slaves to this gov't or to corporations. Jobs cannot be created unless companies think they could profit from expanding and need incentives. Would be nice if people stopped exploting and taking advantage of others. The rich get bailed out in this country and steal billions with a pen while some poor hack goes to jail for stealing a candy bar at a 7-11.

[outlawbirder]

11:15 AM on 12/20/2009

Thank God we have Obama and "HOPE"

[allwrite]

06:46 AM on 12/19/2009

If we do not get the money out of politics, the people's interests will never be served.

[outlawbirder]

11:17 AM on 12/20/2009

Thank God we have Obama and "HOPE"

[njglea]

10:57 PM on 12/18/2009

I agree with 1Southern Belle that we can control part of this situation by moving "OUR" money around. She suggests using credit unions instead of banks, which is a good idea. Using local banks, where we have more control, is also a good idea. But I think the best idea is to take away Wall Street Investment Banks' toys - money in 401Ks. About 50% of us keep putting money into their "unregulated playpen" every week or month trying to make a few retirement bucks. Most of us would probably do just as well in the long run, if not better, by buying CDs in local credit unions and banks. There's also the Direct Investment option if one wants to buy stocks in certain companies. Things would change dramatically if Wall Street didn't have so much "play" money. I invested all my 401K dollars in U.S. treasuries and people said I was "not making the most of my money". I haven't lost a dime so I've actually made more than most people. Sadly, the Federal Reserve has now loaned those dollars to the very robbers who caused this whole mess so it's CDs and Direct Investment for me.

[travelah]

11:33 PM on 12/19/2009

Glea, you have actually lost more than most. The markets have already rebounded from their losses significantly. My 401K earned 22% in the last quarter and that was with a fairly conservative investment mix. The long term return on investments held in 401K retirement funds average well over 10% compared to your very low return on CD investments of 2-3% before tax. As long as interest rates remain rock bottom you are only killing yourself financially.

[yourmomscalling]

07:47 PM on 12/18/2009

This wont go on forever soon it will come to a screeching HALT !!
and then we get our turn

[katooom]

04:34 AM on 12/18/2009

Is there no better proof that we are getting shafted?

[nopilikia]

12:29 AM on 12/18/2009

Daaaamn, sure good to see my tax bucks finally making the big money. My bonus check is in the mail, right?

[billsmile]

11:40 PM on 12/17/2009

Something tells me that if my family starts starving then Wall Street is going to kick some butt.

If some company lays off thousands----Wall Street is going to celebrate with a parade.

Your 401K is a no interest loan to those who profit from your demise.

But you tend to think that your interests are tied to Wall Street because your later life depends upon it.

It's a rigged game working for those who make the rules....like those who came up with the 401K idea.

[outlawbirder]

11:22 AM on 12/20/2009

Thank God for my defined benefit pension . oops I forgot about inflation, my bad.

[Rubyfoo]

05:28 PM on 12/17/2009

The trickle-down effect smells suspiciously like urine. Or is the trickle-up effect, or the upward torrent? In any case, we have the Audacity of Hype to fall back on.

[outlawbirder]

11:23 AM on 12/20/2009

Don,t piss on my leg and tell me it's raining.

[SangZe]

04:48 PM on 12/17/2009

And the president says it's all just fine with him, not that they care. He can't do anything, as he so clearly has shown us.

[outlawbirder]

11:24 AM on 12/20/2009

Thank God for Obama and "HOPE"

[invest in jobs]

04:41 PM on 12/17/2009

Americans are more pessimistic now according to a recent study today about the economy then they were in jan 2009- even before all the greenshoots BS.
hat tip to; http://financeopinionss.blogspot.com

The working classes have seen declining real incomes for many years – something that was hidden due to excessive bank credit. We are running deficits equal to 15% of our GDP just to keep job losses from becoming worse.

[rextrek]

04:36 PM on 12/17/2009

woohoo...and Im so happy Im finally up to 32K yr...40hrs wk, full time...woohoo.......

[ZSV]

04:22 PM on 12/17/2009

It's a clear sign that Obama was a Trojan horse for wall street. Where were geitner bernacke and that ex CEO from citi at during his campaign? And where are the people that were next to him during the campaign today? Tossed aside to exile jobs while obama bowed to his masters and filled one position after another from citi or wall street. I will vote against him next election even if it's a Palin-Devil ticket I have to vote for....

[Eartha]

05:51 AM on 12/18/2009

where was Rahm?

[outlawbirder]

11:28 AM on 12/20/2009

Thank God for Obama and "HOPE" . If I keep repeating it maybe it will come true.