|PRINT | CLOSE WINDOW|
Higher interest rates, litigation costs and uncertainty surrounding the federal government could temper earnings in the securities industry in the second half of 2013, state Comptroller Thomas DiNapoli said Tuesday.
The industry had a strong first six months, with profits of $10.1 billion, continuing a trend of four years of profitability after record losses in 2007 and 2008, DiNapoli said. He projects earnings of $5 billion in the second half of this year, for a full-year total of $15 billion.
Profits totaled $23.9 billion in 2012, the third highest on record, DiNapoli said.
“The political gridlock in Washington may take a bite out of the securities industry’s profits for the fourth quarter,” he said in a statement. “Washington’s inability to resolve budget and fiscal issues is bad for business.
“Wall Street has undergone substantial changes since the financial crisis, yet it remains profitable, contributing to the improved finances of New York City and New York State. Failure to resolve the federal budget and debt ceiling impasse could disrupt the economy and hurt New York City and New York State.”
(c) 2013 Rochester Business Journal. To obtain permission to reprint this article, call 585-546-8303 or email email@example.com.