Reports

Six years after the financial crisis, the securities industry continues to deal with the fallout. Regulatory reforms are changing the way the industry operates by requiring larger reserves, limiting certain activities and imposing other changes intended to reduce unnecessary risk and to enhance transparency.

The average bonus paid to securities industry employees in New York City grew by 15 percent to $164,530 in 2013, which is the largest average bonus since the 2008 financial crisis, and the third highest on record.

Five years after the bankruptcy of Lehman Brothers, Wall Street has made an impressive comeback. The industry is adapting to regulatory reforms and other challenges, and has been profitable for four consecutive years (including the three best years on record).

Cash bonuses paid to New York City securities industry employees are forecast to rise by 8 percent to $20 billion during this year’s bonus season.

Five years after the beginning of the financial crisis, the securities industry remains in transition. The industry is still working through the fallout from the financial crisis and many business patterns and practices are changing as a result of regulatory, technological and economic factors.

Cash bonuses paid to New York City securities industry employees are forecast to decline by 14 percent to $19.7 billion during this year’s bonus season.

Wall Street recovered quickly from historic losses in 2007 and 2008 (greatly aided by the intervention of the federal government), but it still faces significant challenges.

Cash bonuses paid to New York City securities industry employees declined by nearly 8 percent to $20.8 billion in 2010, about one third less than paid out in 2007 before the financial crisis.

The recent financial crisis, which was precipitated by excessive risk-taking, began in the United States but quickly spread across the globe and caused the worst recession since the Great Depression.

Wall Street bonuses paid to New York City securities industry employees rose by 17 percent to $20.3 billion in 2009.

The global financial crisis was rooted in excessive risk-taking, which exposed the financial industry to historic losses when underlying assumptions proved faulty.

Cash bonuses paid by Wall Street firms to their New York City employees declined by 44 percent in 2008 in response to record losses suffered by the securities industry.

Wall Street and the nation have been pounded by the fallout from the subprime credit crisis that reached a critical point in July 2007.

Average Wall Street bonuses in 2007 declined 4.7 percent from record levels in the prior year to $180,420 even though the credit crunch and market turmoil battered profits.