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July 9, 2008 4:15:56 AM CDT

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Street Foresees Very Good Year

Posted Nov 13, 07 12:44 PM CST in Business    Editor's Choice

(Newser) – Despite $45 billion in subprime writedowns, rolling CEO heads, and an $84 billion drop in market value, Wall Street will somehow post its second-most-profitable year ever, reports Bloomberg. “As the bombs are dropping and the mines are exploding, it's a bit of a surprise,'' said an investment banker. Goldman Sachs and Lehman Brothers will record their best years ever.

Analysts say five of the biggest Wall Street firms will earn $28 billion this year, down 8.3% from the record $30.6 billion in 2006, and could earn $32 billion in 2008, driven by growth in Asia and Europe. But Wall Street hasn’t escaped unscathed, cutting 10,000 jobs in addition to the high-profile ouster of CEOs at Merrill, Citigroup, and UBS.

Source Bloomberg

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The Nasdaq MarketSite, left, is shown in New York's Times Square.   (Associated Press)
Trader Christopher Alegre, right, uses his handheld device as he works in the crowd on the floor of the New York Stock Exchange, Tuesday, Sept. 18, 2007.   (Associated Press)
Many Wall Street firms will report near-record profits this year.   (Getty Images)
A trader makes a telephone call from an asset management company in Paris.   (Associated Press)
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Wall Street  • Citigroup  • Merrill Lynch  • Goldman Sachs  • investing  • Lehman Brothers  • UBS  • earnings


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