Another sign of the permanent structural change in New York’s state and city tax base: today’s warning by Fitch Ratings that the world’s largest banks (including NY-based Goldman and Chase) will need to raise $566 billion to satisfy new capital requirements to protect against capital shocks.
The New York Times DealBook notes that the so-called Basel III rules, devised by the global Financial Stability Board, “could reduce the median return on equity to 9 percent from current returns of approximately 11 percent … a potential 20 percent reduction in profitability in the next decade.”
“Single-digit return on equity reasonably could be the rule of the day,” said Martin Hansen, senior director in Fitch’s macro credit research team. “The recent high historical returns may be difficult to achieve.”
About the Author
You may also like
NY’s pre-Covid tax base drain confirmed in new comptroller’s report
New York was a net loser of income tax filers to other states even in the five years leading up to the pandemic disruption of 2020 Read More
Charter Law Fix is Low-Hanging Fruit for Legislature
A floor amendment to lift the charter cap that limits the number of charters granted to operate such schools in New York City was rejected by the State Senate last week. Read More
Voters Reject a Pair of Tax Cap-Breaching School Budgets
New York school districts whose budgets were defeated yesterday can hold a re-vote in June on the same proposal or a modified one Read More
NY’s pandemic-punctuated school spending topped US average by 89%
In a school year whose last quarter was severely disrupted by the Covid-19 pandemic, New York once again led all states in spending on elementary and secondary education Read More
Renewable Energy, Open Space, and Agriculture – New York Can’t Have it All
New York faces the prospect of growing land use conflicts in coming years, due to the Climate Leadership and Community Protection Act Read More
Can New York City Do Without the Greenpoint Energy Project?
National Grid is trying to expand its natural gas compression facility in Brooklyn, but New York’s Department of Environmental Conservation delayed making a decision to approve it Read More
Stock markets gyrations could make Albany dizzy
Recent stock market trends could punch a hole in New York's overstuffed state budget. Read More
Set Free New York’s Zombie Charters
Due to a quirk in state law, roughly 10,000 mostly low income and minority kids in New York City are being denied the charter school seats their parents covet for them. Read More
Enjoying our work? Sign up for email alerts on our latest news and research.
Together, we can make New York a better place to live and work!