Wall Street Eyes Record Bonuses With Profit on Pace for $90 Billion

Let's turn to Wall Street, though. Firms are poised to take in $90,000,000,000 in profits, smashing last year's record. Bonuses are also expected to reach an all time high. Joining us now is Herman Chan, senior US bank analyst for Bloomberg Intelligence, who's also gearing up for bank earnings next week. Herman, is this just a really strong first half? How much is the second half contributing to what's going to be a banner year for Wall Street? Right. The first half was really spectacular, particularly in equity trading and also the resurgence of IPO activity within the group. The second half's turning out to be a bit choppier. We've gotten some mixed guidance, from the investor conferences over the past, month or so where, some banks like JPMorgan are expecting continued growth in in trading and investment banking, whereas, Bank of America seems a bit choppier results across the trading front. So, mixed results expected for the third quarter, and we'll see what shapes up for the fourth. Herman, just bringing it back to the local level here. This is a big source of revenue for New York, New York City, the state. Generally, these guys are still putting... Staying put here, the talent pools here. Are you seeing anything that makes you think that maybe we have more exits, this place like Texas and Florida? Yeah. I I think you're going to see some more diversification of of the footprint for for folks in the finance industry. You've seen, banks like Morgan Stanley talking about opening up a a hub in Dallas. So those things are continued to to shape up. I think a lot of it just deals with the tax regime here in New York where it's a bit more precarious, whereas, some some tax friendlier states and locales are are are being a bit more productive in hiring these folks away. So that that will be an ongoing thing, but we do think the the senior execs will will continue to stay within the New York complex.