10,000 finance jobs set to disappear on Wall Street
New York City could lose 10,000 financial jobs by the end of 2012, according to the state comptroller.
NEW YORK (CNNMoney) – The New York State comptroller expects Wall Street to lose 10,000 jobs by the end of 2012.
Job losses are expected to occur in New York City’s securities industry by December 2012, according to Eric Sumberg, spokesperson for state comptroller Thomas DiNapoli.
“It now seems likely that profits will fall sharply, that job losses will continue and that premiums will be lower than last year,” DiNapoli said in a press release. “These developments will have a ripple effect on the economy and have a negative impact on state and city tax collection.”
The Monitor blamed the bleak outlook on “uncertainty due to the European sovereign debt crisis, a sluggish national economy, volatile stock markets and regulatory changes.”
The comptroller’s office highlighted Wall Street’s good start to 2011, noting that the securities industry has weakened significantly for the remainder of the year.
Wall Street created 9,900 jobs between January 2010 and April 2011, but then lost 4,100 jobs until August.
The comptroller’s report said “job losses are expected to continue given declining profitability and recent layoff announcements,” predicting that Wall Street layoffs could total 32,000 for the period from January 2008. at the end of next year.
Member companies of the New York Stock Exchange earned $ 9.3 billion in the first quarter, but profits “fell sharply” in the second quarter and are expected to fall below $ 18 billion for the entire period. ‘year.
Wall Street bank stock prices fell in trading on Tuesday, in a backlash to Monday’s rally and nervousness ahead of second-quarter corporate earnings.
JPMorgan Chase Actions (, Fortune 500), Goldman Sachs ( , Fortune 500), Bank of America ( , Fortune 500), Wells Fargo ( , Fortune 500) and Morgan Stanley ( , Fortune 500) all fell around 1%, and Citibank ( , Fortune 500) fell 2%.
Nationally, the United States created 103,000 jobs in September, which was more than expected, the federal government reported earlier this month.
But the economy has only recovered 2.1 million of the 8.6 million jobs lost since the start of the recession, keeping the unemployment rate at 9.1%.
First published: October 11, 2011: 9:46 AM ET