Your current web browser is outdated. For best viewing experience, please consider upgrading to the latest version.

Donation - Other Level

Please use the quantity box to donate any amount you wish. Sign Up to Donate

Contact

Send a question or comment using the form below. This message may be routed through support staff.

Email Article

Password Reset Request

Register


Add a topic or expert to your feed.

Following

Follow Experts & Topics

Stay on top of our work by selecting topics and experts of interest.

Experts
Topics
Project
On The Ground
ERROR
Main Error Mesage Here
More detailed message would go here to provide context for the user and how to proceed
ERROR
Main Error Mesage Here
More detailed message would go here to provide context for the user and how to proceed

Manhattan Institute

search
Close Nav
Share this commentary on Close

Why Wall Street's Decline Will Never End

commentary

Why Wall Street's Decline Will Never End

New York Post March 20, 2017
Urban PolicyNYC
EconomicsFinance

Since President Trump’s election, bank stocks have soared more than 30 percent, with investors thinking the new president will be great for the finance industry.

But a new report by New York state’s fiscal watchdog shows that investors may be too optimistic. Wall Street workers face huge threats, and their employers’ friends in the White House may not be able to rescue them.

The news from state Comptroller Tom DiNapoli at first seems encouraging: Wall Street profits were up “sharply” last year — by 21 percent — and jobs and bonuses are up, too.

The $17.3 billion profit line was a turnaround from the previous three years, when profits had fallen. “The jump in profitability is good news, since the industry generates a significant amount of tax revenue” for New York, DiNapoli said.

But there is less here than meets the eye. A lot less.

Though profits were up, revenues were down. In fact, revenues fell for the second year in a row, by 1.3 percent.

Wall Street banks increased profits only because one huge expense also fell: the billions of dollars they’ve had to pay to the government in fraud and other settlements since the 2008 crisis. Banks are seeing a boost because they’re finally done paying for this mess.

Bank executives should be relieved that this is all over, but.....

Read the entire piece here at the New York Post

______________________

Nicole Gelinas is a senior fellow at the Manhattan Institute and contributing editor at City Journal. Follow her on Twitter here.

Saved!
Close