General Discussion
Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsGreece Threatens Wall Street Jobs in Third Trading Plunge
(Bloomberg) Wall Street bankers and traders, given hope by a market rebound in the first quarter, are now seeing earnings and paychecks threatened by turmoil in Greece in what is becoming an annual cycle.
For a third consecutive year, revenue from investment banking and trading at U.S. firms may fall at least 30 percent from the first quarter, Richard Ramsden, a Goldman Sachs Group Inc. (GS) analyst, said in a note last week. Greece, which gave English the word cycle, has been the main reason each year that the second quarter soured after a promising first three months.
Deal volume has dropped and equity and credit markets have fallen on concern that Greece may abandon the euro and the European sovereign-debt crisis will spread to nations including Spain. Those economic issues cut profit, bonuses and jobs at Wall Street firms in last years second half and threaten to do the same in 2012.
Its going to be a tough summer at least, and it does feel like the last couple years all over again, said David Konrad, an analyst at KBW Inc. in New York. The bank valuations seem unfairly discounted, but investors are looking at this year and saying, Im not going to fall for this again. ...................(more)
The complete piece is at: http://www.bloomberg.com/news/2012-06-11/greece-threatens-wall-street-jobs-in-third-trading-plunge.html
Skinner
(63,645 posts)Well, at least Greece is doing one thing right.
sabbat hunter
(6,825 posts)and New york state relies heavily on Wall street jobs. We do not want to see them disappear. Instead what we need is greater accountability from those that run wall street, not a loss of jobs from people that work on it.
Greece has a huge issue in simply collecting revenues due it from its citizens. Tax collectors get paid off by people to NOT do their jobs. Almost every year Greece has lower than expected revenues, because all of the revenue it was due was not paid.
Greece would be in a better position if they rooted out this corruption and went after these non payers and got the money owed to it.
belcffub
(595 posts)I think I remember reading the NY State gets about 20% of it taxes from wall street, both directly and indirectly... taxes on transactions and on the income that wall street produces is what makes NY function... take those out even a little and NY suffers big time without a replacement source of income...
AndyA
(16,993 posts)If it threatens Wall Street.
The American people, not so much.
Egalitarian Thug
(12,448 posts)been prosecuted or stopped, it's business as usual. If anything, we are in a more precarious position. Housing is still a basket case, banks are still stealing as much as they can grab, the financial regulators are still asleep at the switch, and we still have a G$ White House and Congress. Add the European factor and what little progress that has been made is nullified.
Think about this, the yield on two year German bonds is zero.
xchrom
(108,903 posts)L0oniX
(31,493 posts)F*cking asscarrots won't give out small business loans but will gamble on Wallstreet.
Odin2005
(53,521 posts)They are a bunch of worthless parasites.