the bankers and Wall Street traders are frown. Their bonus fell 9% in 2015 to 146,200 dollars (132,800 euros), the report of the Comptroller of the State of New York, on Monday March 7th. The most since 2011 and is 25% lower from the peak of 2006.
The phenomenon is explained mainly by a further decline in profits for the third consecutive year. Brokerage firms and market activities of large banks have accumulated profits of $ 14.3 billion, a decrease of 10.6% compared to 2014.
The reason is twofold. On the one hand, the new regulation has forced the institutions to adopt less risky business models, therefore less profitable. Moreover, after the first three strong quarters, the situation has deteriorated in the fourth, the sector recording its first loss in four years.
Progress for two consecutive years
Not only the size of the pie has shrunk, but in addition, the number of guests has increased. After the creation of 2 400 jobs in 2014, the sector hired 4,500 additional employees in 2015 to reach a total of 172 400. This is the first time since the beginning of the crisis we are witnessing an increase of two years after. However, employment on Wall Street still has not regained its 2008 levels, which remain below 8%.
The decline in bonuses has not affected all trades in the same proportions. The actors of “fixed income” (bonds, currencies and commodities) posted a 10% to 20%. In contrast, revenues in mergers and acquisitions and private equity (investment in unlisted companies) are progressing.
However, Thomas DiNapoli, the Financial Controller of the State of New York, remains pessimistic. “If the cost of fines decreases, continued weakness in the global economy and market volatility could undermine profits in 2016″ , he warns building on a further decline in the overall envelope . of 2.5% bonus
the employees in the sector, however, are not to be pitied in 2014 (latest figures available), the average salary (fixed and bonus) was 404 $ 800 six times more than the average wage in the private New York.