The Securities Industry in New York City, October 2023

The securities industry saw record performance in 2020 and 2021, facilitated by lower borrowing costs and increased liquidity resulting partly from the federal government’s policy response to the pandemic.
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Wall Street’s 2023 first half profits of $13 billion were down 4.3% from the same period last year but tracked the industry’s return to pre-pandemic levels of revenue after record profits in 2020 and 2021. Financial firms’ interest expenses were seven times higher in 2022 than in 2021. Data for 2022 will likely show a decline in the industry’s economic contribution, back to pre-pandemic levels (14.5% in NYC in 2019), reflecting the drop in firms’ profitability.

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