The Securities Industry and Financial Markets Association (Sifma) held its annual meeting today. Speakers’ outlooks on the financial industry bode poorly for New York’s economy.
“I think we will see a lot more cost cutting,” said Toos Daruvala, director of banking and securities for McKinsey. “I think we are in this for a few years yet.” But, he added, “you cant cut your way to greatness. It’s not possible.”
“Compensation can … probably be ratcheted down,” said Guy Moszkowski of Bank of America / Merrill Lynch (speaking not of his firm but of the financial sector in general).
The financial industry “is in the second inning of cost-cutting in terms of headcount and compensation,” said Matthew Carpenter, senior portfolio director of Moore Capital Management.
When it comes to New York State and City budgets, expect to see more reports like this one.
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