Is New York's Economy Due for a Hit?

Wall Street’s fortunes may be taking a turn for the worse — a development that would have major ramifications for the local economy. Major banks - most recently Bank of America — have announced shrinking profits, job cuts or both.


The gloomy reports are dashing hopes that large year-end bonus checks for investment bankers and traders would continue to fuel the local economy, Patrick McGeehan writes in a news analysis. The chief economist for the city comptroller’s office says the chance of a recession is increasing.


Wall Street is a critical fulcrum of the local economy, generating one of every five dollars of income in the region. Economists estimate that each new job on Wall Street leads to at least 1.3 other jobs, so for every three investment bankers laid off, four other workers are in jeopardy.