NEW YORK CITY-Given high volatility in the stock market, a sluggish domestic economy and uncertainty due to the European sovereign debt crisis, Wall Street profits, jobs and bonuses are likely to drop by the end of 2011, according to a new report from the New York State Comptroller Thomas P. DiNapoli. The weakened outlook has been prompted by the OSC’s estimation that the city could lose nearly 10,000 jobs by the end of 2012, which would bring total job losses in the securities industry to 32,000 since January 2008.

Based on the financial sector’s diminished role as an economic engine for New York City and the state, DiNapoli warns that further job cuts will “complicate already tough fiscal situations” for governing bodies who are already struggling to bring in tax revenue and maintain essential services. “These developments will have a rippling effect through the economy and adversely impact state and city tax collections,” he says, in a statement. “As we know, when Wall Street slows, New York City and New York State’s budgets feel the impact, and that is a concern,” he adds.

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