Bonuses For Wall Street Expected To Fall By 22%
Wall Street bonuses are expected to fall by at least 22% this year after last year's big payouts, according to a new report from New York State Comptroller Thomas DiNapoli.
Photo Insert: A slowing economy, geopolitical chaos, and heightened inflation have all worked to dry up the number of IPOs and mergers, and acquisitions made on Wall Street.
A slowing economy, geopolitical chaos, and heightened inflation have all worked to dry up the number of IPOs and mergers, and acquisitions made on Wall Street
It means that the fees investment bankers collect have taken a nosedive from their 2021 records, Nicole Goodkind reported for CNN Business late on Oct. 27, 2022. Wall Street firms' pretax profits for the first half of the year were $13.5 billion, DiNapoli said.
That's a 56% drop from the $31 billion earned in the same period last year.
"The last two years of profits and bonuses fueled in part by the extraordinary federal response to the pandemic were not sustainable," DiNapoli said. "As the sector slows down in 2022, leading firms are reviewing staffing and office space needs and a prolonged downturn could negatively impact state and city coffers."