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Financial Sector May Face Another Fall

NEW YORK CITY-Pointing up the recent government shut down, rising interest rates and other threats, the state comptroller says in a new report that the future of the financial sector is looking cloudy.

By Rayna Katz | Updated on October 22, 2013

NEW YORK CITY-While the securities industry had a strong first half of 2013—reporting profits of $10.1 billion—uncertainty in Washington and some changing conditions threaten earnings in the second half of the year, according to a new report, released Tuesday, by New York State Comptroller Thomas DiNapoli. Rising interest rates, litigation costs and the uncertainty created in Washington D.C. could limit overall earnings for the year to $15 billion.

“The political gridlock in Washington may take a bite out of the securities industry’s profits for the fourth quarter,” DiNapoli says. “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.”

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