Thomas P. DiNapoli, the office of the New York State Comptroller
DiNapoli Report: Upward Spiral for Bonuses and Layoffs
Bonuses for 2012 will rise by 9 percent during this year’s bonus season as profits for broker/dealer operations of NYSE Euronext exchange members tripled compared to profits earned in 2011, according to report from the office of the New York State Comptroller Thomas P. DiNapoli.At the same time, the comptroller’s office reports that employment was static during the first half of 2012, and dropped slightly during the second half as firms resumed downsizing.
In fact, employment slid to 169,700 jobs as of December 2012—1,000 fewer jobs than a year before. DiNapoli says the industry will restructure and downsize until it establishes a new business paradigm. The drop follows strong job growth in New York City during 2010 and 2011.
“Wall Street is still in transition, but it is slowly adjusting to changes in its economic and regulatory environment,” DiNapoli says in a statement. “Profits and bonuses rebounded in 2012, but the industry is still restructuring. Despite its smaller size, the securities industry is still a very important part of the New York City and New York State economies.”
The profits for Wall Street firms totaled $23.9 billion in 2012, which is three times the $7.7 billion earned in 2011, making 2012 among the most profitable years on record, according to the comptroller’s report.
The DiNapoli report also found:
The average cash bonus will rise by 9 percent to almost $121,900 in 2012 compared to 2011. The increase has been attributed to a smaller cash bonus pool in 2012 as there were more people employed on Wall Street in 2011;The securities industry, on a seasonally adjusted basis, has regained only 30 percent of the jobs lost during the Great Recession. In fact, the comptroller estimates that the securities industry in New York City lost 28,300 jobs during the financial crisis and has added only 8,500 so far during the recovery, a net loss of 19,800 jobs.While wage data is not yet available for 2012, the average salary, including bonuses, for those in the securities industry in New York City was almost $362,900 in 2011.
Former Deputy Secretary of State Returns to Morgan Stanley
Thomas R. Nides, the former deputy Secretary of State for the Obama administration and former chief operating officer (COO) of Morgan Stanley, will return to the bank as vice chairman, officials say.
Nides will have a broad mandate to focus on Morgan Stanley’s global clients and other key global constituencies, officials say. He will work with senior management on issues related to external and government affairs.
Nides will be a member of Morgan Stanley’s operating and management committees and will report directly to the chairman and CEO James P. Gorman, officials say. He will work closely with Colm Kelleher, president of the institutional securities group, and Greg Fleming, president of global wealth management.
Prior to joining the Obama administration, Nides served as COO of Morgan Stanley from 2005 to 2010 and was a member of the operating and management committees.
Before Morgan Stanley, he served as president and CEO of Burson-Marstellar and as chief administration officer of Credit Suisse First Boston, the investment banking division of Credit-Suisse Group.
Colin Powell to Deliver Keynote at Fiserv Forum
Retired General Colin L. Powell
Retired General Colin L. Powell will deliver a keynote address at Fiserv Forum 2013, a spring conference for Fiserv clients, to be held Apr. 15-18 at The Venetian and The Palazzo in Las Vegas. Powell, a retired four-star general of the U.S. Army and the 65th U.S. Secretary of State, will speak to attendees about the lessons that shaped his life and career, officials say. At the client forum, Powell will share his lessons on life and leadership from historic career in the military and public service, officials say. The forum will feature more than 100 sessions dedicated to financial services trends and technologies, including mobile banking, payments, and strategies for serving the small businesses market.
GFI Opens Office in Manila for Fixed Income Markets
GFI Group has opened an office in Manila, the Republic of the Philippines, to focus on brokering of Philippine government and corporate fixed income products in the domestic market, say officials.
The GFI Manila office will be headed by Derrick Aquino, who has more than a decade of experience in the financial markets locally and internationally. Aquino, who has been with GFI since 2005, has worked as a fixed income trader in Manila and Hong Kong with major financial institutions. At GFI, he has expanded the firm’s Asian High Yield Sovereign business and is currently the managing director for Philippine fixed income.
The new office, which will have a staff of 10 people, the Philippines joins GFI Group’s network of offices in Asia which includes Japan, Korea, China, Hong Kong and Singapore.
ISITC to Host Forum in Boston
Jan Ellis Snitzer,
chair of ISITC,
Vice President,
Loomis, Sayles & Co
Industry trade group the International Securities Association for Institutional TradeJan Ellis Snitzer,chair of ISITC,Vice President,Loomis, Sayles & CoCommunication (ISITC) announced that its 19th Annual Industry Forum and Vendor Show will be held March 17 – 20, 2013 in Boston at the Renaissance Boston Waterfront Hotel.
The event, “Leader of the Pack: The Next Generation in Financial Services,” will focus on standards in transaction processing and related communications.
“Through the theme of leadership and our interactive workshops at the show, we expect to continue forging change and best practices in corporate actions, derivatives, regulation, reconciliation, securities lending, settlements, industry initiatives, reference data and more,” says Jan Ellis Snitzer, chair of ISITC and vice president at Loomis, Sayles & Co.
More than 300 representatives from the broker-dealer, investment management, custodian and associate communities are expected to attend the event.
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