The pool climbed as some firms moved up payments to 2012 to avoid paying higher federal personal income taxes taking effect this year and as profits in the securities industry increased three-fold, he said.
'Wall Street is still in transition, but it is slowly adjusting to changes in its economic and regulatory environment', DiNapoli said. 'Profits and bonuses rebounded in 2012, but the industry is still restructuring. Despite its smaller size, the securities industry is still a very important part of the New York City and New York state economies'.
In the meantime, Bloomberg also reports that a proposed European Union ban on bonuses that exceed fixed pay would harm banks’ ability to build up capital, said Andrew Bailey, the U.K.’s chief banking supervisor.
Bailey, who is chief-executive-elect of the U.K.’s Prudential Regulation Authority, said at a Paris conference he was 'skeptical and concerned' about the plan to limit bonuses, because it would 'make the cost base inflexible and make it more difficult to retain earnings and build capital'.
image: © Tax Credits