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Shutdown Reduces Wall Street Profits But Not Salaries

October 28, 2013

Last year, Wall Street workers saw a 10 percent bump in their bonuses, but DiNapoli doubts that will be the case this year. Its too early to tell, but with profits down, I wouldnt expect bonuses to be high, he said. The average salary, including bonus, was $360,700, last year. New York State Comptroller Thomas DiNapoliPhoto: AP Complete data on Wall Streets cash bonuses is expected sometime in February. After showing signs of a recovery, the jobs picture for the financial industry is also looking ugly, with employment down 13.5 percent from 2009, the year just after the credit crisis hit. Complete data on Wall Street employment couldnt be calculated due to this months government shutdown, DiNapoli said in his report. Historically, Wall Street tax revenues from bonuses have helped drive New Yorks economy. The securities industry accounts for just 5 percent of private sector jobs in the state but nearly 22 percent of wages, according to DiNapolis report.

Levine on Wall Street: Good Goldman

If you said “that Codere is an undervalued credit and will pay off its loan,” or “that Codere is an overvalued credit and will default,” you would have been wrong. The thesis was “we have discovered a trick and are going to use it.” An amazing Greek bonds trade On the other hand, the three best performing bond funds in the world this year, each with 100+ percent returns, had an economic thesis, and it was “let’s buy Greek government bonds because how much worse can it get?” Here’s Aris Papageorgakopoulos of Eurobank Asset Management: “Greek bonds at one stage were the single most hated asset class in the world and we thought that there was not much to lose at the bottom of the market.” There are important lessons here about investing psychology and serial correlation — past performance not predicting future returns — and also about the importance of investment mandates. These guys are as surprised as anyone else to find themselves on top of the league table: Their funds’ rules require them to invest in Greek government bonds, and they did, at the right time. The right time being last year, at like 12 cents on the euro. But those rules also required them to invest in Greek government bonds at the wrong time. The wrong time being, for instance, in March 2009, just before Greece imploded. That’s when Papageorgakopoulos’s fund launched. That amazing Irish tax trade Here’s a profile of Feargal O’Rourke, the Irish tax accountant who helps multinational companies set up Irish subsidiaries in such a way that lots of their income is subject to no tax in Ireland or anywhere else. The trick, known as the “Double Irish,” is to make the subsidiary Irish under most countries’ tax laws — so those countries leave it to pay income tax in Ireland — but Bermudian under Ireland’s tax laws, so it doesn’t actually pay income tax in Ireland.

With new iPads on the way, Wall Street homes in on iPhones

Apple's iPhone 5S.

That’s not a new story for Apple’s financial health, the bulk of which is fueled by the now six-year-old product line. But this quarter’s special. It includes, for the first time, two new iPhones — the 5S here. and 5C. Those phones hit store shelves last month and only eight days of initial sales are included as part of this quarter. Still, with a record 9 million phones sold in the opening weekend, Wall Street’s anticipating that Apple will post its highest-ever fourth-quarter revenue as a result. Apple’s expected to post earnings of $7.92 per share on sales of $36.82 billion for its quarter, which ended September 28. That’s near the top of a $34 to $37 billion sales estimate Apple offered when it reported its previous quarter in July.

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