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Quick Hits: Blizzard of Pink Slips to Hit Wall Street
Scott Reeves Oct 27, 2008 3:00 pm
Brief scrutiny of today's headlines.
Wall Street is expected to lose about 40,000 jobs in the current economic downturn.
So far, New York Comptroller Thomas DiNapoli says about 13,200 people have already received pink slips. The worst is yet to come.
Behind the statistics, Wall Street talent is packing up for Florida, Virginia, Illinois, Wisconsin and even Asia.
This is good news for boutique firms looking to grab top talent. One CEO at a Florida firm says one out of every 4 or 5 resumes comes from major Wall Street firms, compared with about 1 out of 100 in previous years.
A few may match their heady Wall Street salaries, but most will take a pay cut and hope to make up the difference via reduced living expenses and lower taxes in their new state. There is no state income tax in Florida while New York has high city and state levies.
It appears some bankers are willing to leave the country for a job. London isn't hiring, but many view Singapore as an emerging market.
The US Bureau of Labor Statistics says New York is the top-paying state for financial advisers, with an average salary of $131,660. Colorado is next, at $119,590, followed by Massachusetts at $116,170. Idaho was lowest, at $50,980.
The finance job market is now flooded with highly qualified applicants, and there are few openings. This almost certainly means that those who lack a golden parachute will move on to other fields.
New York will take a short-term hit, but if city and state officials are smart -- and you can argue that would be a first -- Wall Street will recover.
Some top talent will certainly want to return to the Big Apple - and here's betting that the young gunslingers now in business school don't aspire to the bright lights of Milwaukee.