DiNapoli increases securities industry profit prediction
By Robert Steyer | December 13, 2012 2:54 pm
New York State Comptroller Thomas DiNapoli upgraded Thursday his profit prediction for Wall Street firms to approximately $20 billion in 2012 from his original forecast of more than $15 billion, confirmed Eric Sumberg, a spokesman for the comptroller.
Mr. DiNapoli, sole trustee of the $150.1 billion New York State Common Retirement Fund, made his revised assessment of securities industry profits in a report issued Thursday that analyzes New York City's four-year financial plan.
As part of a separate annual report on the securities industry in New York City, the comptroller's office tracks the profits of broker-dealers that are member firms of the New York Stock Exchange.
The new report said the reason for Mr. DiNapoli's revised estimate was due to the New York Stock Exchange recently reporting that “member firms earned another $7.1 billion in the third quarter, pushing year-to-date profits to $17.6 billion.”
“Absent adverse developments in the fourth quarter, such as the failure to reach agreement on avoiding the fiscal cliff, the securities industry is now on pace for one of its best years,” Mr. DiNapoli's report said.