Wall Street Headed for Record Profits in 2009

New government figures show Wall Street is on pace to have its most profitable year to date. On Tuesday, the New York Comptroller Office said Wall Street profits are set to exceed the record set three years ago, before the onset of the nation’s financial meltdown. The four largest firms—Goldman Sachs, Merrill Lynch, Morgan Stanley and JPMorgan Chase—took in $22.5 billion in profits through September. The top six banks set aside $112 billion for salaries and bonuses over the same period. In a statement, New York Comptroller Thomas DiNapoli said, “The national economy is slowly improving, but Wall Street has recovered much faster than anyone had envisioned.

Employment in the securities industry in New York City fell by 28,300 jobs since its peak level in November 2007. However, the report predicts that job losses in the sector are unlikely to exceed 35,000, a much smaller loss than previously forecast.

While Wall Street typically generates a large share of New York City and state tax revenue, that figure fell to 15% of tax collections in the current fiscal year, from 20% two years ago.

The average salary in the securities industry also fell slightly in 2008, dropping to $392,130 from a peak of $401,500 in 2007.