Wall Street Will Lose 10K Jobs

New York comptroller predicts blow to economy
By Kevin Spak,  Newser Staff
Posted Oct 11, 2011 11:25 AM CDT
Traders Mark Lodewick, center, and Peter Tuchman, work on the floor of the New York Stock Exchange Tuesday, Oct. 11, 2011.   (AP Photo/Richard Drew)

(Newser) – It looks like a lot of Wall Street denizens will be joining the ranks of the unemployed soon, New York’s state comptroller warns in a report released today, predicting that the securities industry will shed nearly 10,000 jobs by the end of 2012. The industry has already cut 4,100 jobs since April, and deeper cuts are likely inevitable, as several companies have announced that they’re cutting costs, the Wall Street Journal reports.

Bank of America, for example, has plans to lay off 30,000 people, though it’s unclear how many of those will be New York-based securities employees. Goldman Sachs also plans to cut 1,000 jobs, and Credit Suisse Group and Barclays have layoffs on the horizon as well. “The banks I talk to are talking about significantly reduced compensation … and layoffs and downsizing,” says the head of one New York business group. “There’s going to be a real impact on the New York City economy." And it's not looking good for the availability of federal unemployment benefits, either.

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