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ANCHOR JIM FLINK

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Protesters outside of Wall Street aren’t the financial capital’s only worry. According to a new report from the New York State comptroller, the Empire State’s securities industry is likely to be hit hard next year.

That means -- job loss, falling profits and smaller bonuses.

Fox News explains where the layoffs will come from:

“Wall Street jobs may not be as safe as the protesters claim, New York is predicting 10,000 jobs will be lost in the securities industry by the end of next year. State comptroller's office estimates that one in 13 jobs in New York State rely on securities firms, financial firms also expecting to make hits, Goldman Sachs says it may cut more than 1000 jobs, while Bank of America is planning to lay off 30,000 employees.”

Since January 2008, 22,000 jobs have evaporated from the securities industry in New York.

The New York Times notes, the main factor behind increasing cuts is uncertainty in the euro zone, as well as the sluggish American economy.

“The sovereign debt crisis and bank failures may be happening on the other side of the Atlantic, but they continue to take their toll on New York. More than 4,000 people lost their jobs in the city’s securities industry between April and August, as the anemic domestic economy and fresh fears over European debt hurt the financial sector”.
 

But the economic turmoil is not the only reason for the jobs slash. Thomas DiNapoli, who authored the report, says Wall Street is a victim of its own poor practices.

“Excessive risk-taking on Wall Street was a major factor leading to the financial crisis and the recession,”  (...) “Regulatory changes that reduce risk and focus attention on long-term profitability rather than short-term  gains will enhance stability.”

And The Wall Street Journal writes -- this might just be fallout from the financial crisis. DiNapoli expected many more jobs to be cut just after the financial crisis. -- they weren’t -- and now they are likely to be slashed next year:

“A 2008 job-loss forecast for Wall Street turned out to be less severe than Mr. DiNapoli predicted, but Tuesday's report suggests that some of those job cuts might only have been delayed.”
 

New York’s economy is very dependant on its securities industry. The Capitol says the potential consequences the New York city and State are worrisome:

“A less-profitable Wall Street could mean trouble for the city and state’s fragile economies, which rely disproportionately on strong revenue from the financial sector.”

According to the Bureau of Labor Statistics, the number of people employed in finance and insurance fell 8.1% nationwide between December 2006 and August 2011.

Transcript by Newsy. 
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Business News

Wall Street to Lose 10,000 Jobs Next Year

October 12, 2011
(2:19)
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A report from the New York State comptroller forecasts Wall Street will lose 10,000 jobs by the end of 2012.
   
Sources:Fox NewsThe Wall Street JournalThe New York TimesThe Capitol
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