The latest news from Wall Street is likely to leave most ordinary Americans dry-eyed. Year-end bonuses for bankers and traders are expected to be down sharply this year, plunging up to 40% to their lowest level since the financial crisis, according to a closely watched industry forecast. A bond trader who is also a managing director at a top securities firm would have received a bonus of some $2.9 million last year, but will have to make do with $1.8 million this year, the Wall Street Journal reports.
At Goldman Sachs and Credit Suisse, both of which have been carving costs and laying off staff, bankers and traders say clients have been doing fewer deals, cutting revenue and reducing bonuses. Commodities traders and investment bankers are expected to see some of the biggest dips, while wealth-management workers will be among the few to see their compensation rise this year. (Read more Wall Street stories.)