Street Foresees Very Good Year

Amid chaos, $28B in earnings marks the second best in history
By Jim O'Neill,  Newser User
Posted Nov 13, 2007 12:44 PM CST
The Nasdaq MarketSite, left, is shown in New York's Times Square.   (Associated Press)
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(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.