Business | Banking
Wall Street faces 20,000 job cut
Wall Street risks losing over 20,000 jobs over the next two years as the mortgage crisis drives down profits, according to a new report.
- Agenices
- Published: 09:47 March 25, 2008
New York: Wall Street risks losing over 20,000 jobs over the next two years as the mortgage crisis drives down profits, according to a new report.
New York's Independent Budget Office predicts Wall Street's profits for 2007 will sink by more than 80 percent to the lowest level since 1994.
According to the report, profits for 2007 are expected to total just $3.2 billion (Dh 11.8 billion), down from $20.9 billion (Dh 76.8 billion) in 2006, the report said.
Banks and brokerages account for almost 35 percent of all salaries on Wall Street. The sudden drop in the sub prime mortgage market has forced some banks to write-down more than $150 billion (Dh 551 billion).
The report said 12,600 jobs will go this year, followed by 7,600 in 2009.
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