Yes, they need their tax break.
NEW YORK, Nov 16 (Reuters) - Wall Street may earn $19 billion in 2010, its fourth-most profitable year, even as regulatory changes and a weakened economy limit its ability to generate profit, New York state's comptroller said.
The comptroller, Thomas DiNapoli, also said that while it is too soon to predict bonuses, the average payout may rise because banks are shedding jobs and a smaller pool of people wll be eligible to get bonuses.
In a report released on Tuesday, DiNapoli said total profit may slide 69 percent from $61.4 billion in 2009 as Wall Street boosts capital reserves, curbs riskier transactions and focuses on long-term performance more than short-term gains.
DiNapoli said Wall Street has nonetheless benefited from federal bailouts and low interest rates, and may see profitability settle near levels that prevailed prior to 2007 and 2008, when it lost $54 billion overall.
My heart bleeds for their limited profitability. Between this and the health insurers profits, you'd think they'd be clamoring for reform from every Congress.
(H/T AMERICAblog.)