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REPORT & PRESENTATION VIDEOS

Wall Street 2010
and the Impact on the New York Economy
December 16, 2010

Thanks to Our Forum Sponsors

  
 

REPORT & PRESENTATION VIDEOS
Report by Kristina Siapkara
Videos by Suggs Media Productions, Inc.



Times have changed since BALCONY held its first 2008 WALL Street Meltdown in the Financial district featuring New York State Comptroller Tom DiNapoli and then New York City Comptroller Bill Thompson.

While New York State approaches a $9 billion deficit and New York City Mayor Michael Bloomberg is contemplating a new round of extreme layoffs to balance its budget, we hear that profits on Wall Street could top $19 billion in 2010 and that bonuses for those workers are strong which will help the NYC budget. Yet unemployment in New York State and City approaches 10% and cities and counties across the state are dealing with a stark reduction in state revenue sharing and funding of vital services. It is with that backdrop that BALCONY held its third Annual Wall Street and the New York Economy on December 16, 2010, featuring New York State Comptroller Tom DiNapoli and New York City Comptroller John Liu at the Hard Rock Café in Times Square.

Welcome and Introductions

Thomas DiNapoli, NY State Comptroller and keynote speaker for BALCONY for the third consecutive year, highlighted the impact of Wall Street on our New York State budget situation. He stressed that Wall Street is a vital part of NY State economy. He argued that general tax fund collections must grow by nearly 11% by March, 2011 to meet revenue expectations while the current year 2010 – 2011 gap is estimated between $315 million and $1 billion . At the same time, he asserted that the 2011-2012 gap is close to $9 billion. The budget gaps for this and the next year call for a strong vital financial services sector, he argued. Comptroller DiNapoli was positive with regard to Wall Street’s share of NY City tax revenues having fallen from 13% before the crisis to 7% in 2010. He spoke of a changing industry and noted that in the long run sustainable Wall Street profits and revenues is preferable. But this would mean that we have to adjust our expectations on what Wall Street revenues will do in terms of its impact on the City State’s budget. Finally he spoke of the impact of regulatory reforms on the operations of the securities industries stressing that by more effectively controlling risk we can revive long term profitability.

Report referenced:
The Securities Industry in New York City

Thomas DiNapoli


John Liu, NYC Comptroller noted that the finance and insurance sectors account for about 10% of all private payroll jobs in New York City but they generate about 35% of wage and salary income in the New York City private sector. He argued that the industry is directly responsible for 15% of the City’s total tax revenues in the given year and that in fiscal 2010 the finance industry probably generated over $7 billion in tax revenue for New York City. Comptroller Liu expressed his optimism with regard to derivatives trading reforms. He noted that it would be useful to bring financial derivatives out of the shadow while discouraging those derivatives harmful to the financial stability of the sector. He stressed the need for resuming growth in Wall Street but at the same time expanding other sectors of the economy placing a great emphasis on education and on embracing globalization to ensure long term prosperity for New York.

Click here to read the City's Annual Financial - FY 2010 report: John C. Liu report

John Liu

Karen Elinski, Vice President & Associate General Counsel, Government Relations TIAA-CREF, stressed that education is a profoundly important component to stimulating economic growth.

Karen Elinski

Arthur Cheliotes, President, CWA Local 1180 spoke of a ‘greed crisis’ as against an economic crisis stressing the fact that the top 1% of US income earners receive 25% of all income nationwide, the top 1% of NY State earns 35% of all NY State income and the top 1% of NY City earns 45% of all income in the city. He argued that the moral hazard is that the industry does not reward investment in the productive economy as against speculation which will ultimately lead to a broad disparity and a far greater polarization in our society.

Fiscal Policy Institute Analysis of NYS and NYC Personal Income Data

Arthur Cheliotes


Barry Weprin, Partner, Milberg, LLP stressed that a balance between self-interest and regulation needs to be struck and the need to institute reforms like that of the Martin Act.

Barry Weprin

Deborah Solomon, Founder and Managing Member, Juniperhill Asset Management argued that Wall Street constitutes a critical component of New York economy. She spoke of the impact of Wall Street on small businesses, which are approximately 2 million in New York. She stressed the need for Wall Street to invest and focus on small businesses in order to decrease unemployment in New York.

Deborah Solomon

Panel and Audience Discussion

PHOTOS
Photos by Tom Buckner

(click on image for enlargement)

  

Thomas P. DiNapoli
NYS Comptroller

  
John C. Liu
NYC Comptroller
 
Lou Gordon
  
Bruce Ventimiglia
Speakers
     

 
 
Guest, DiNapoli, Ventimiglia
  
Ventimiglia & Harry Feder
  
Cheliotes, Alan Handell,
Steve Anderson
 
 
DiNapoli & Ventimiglia
  
Forum Guests
  
Forum Guests
 
 
Forum Guests
  
Sam Dunson
  
Wayne Fleischman (L)
 
 
Forum Guests
  
Forum Guest
  
Liu & Handell
 
 
David Pollak (c) and Guests
  
Forum Guests
  
Ventimiglia, Liu, Cheliotes
 
 
Gordon & Forum Panel
  
Forum Audience
  
Forum Audience
 
 
Andy Pallotta
  
Karen Elinski
  
Arthur Cheliotes
 
 
Barry Weprin
  
Bruce Ventimiglia
  
Guest
 
 
Lou Gordon & Tom DiNapoli
  
Forum Guests
  
Joseph Stamm & Guest
 
 
Forum Guests
  
Forum Guests
  
Forum Guests
 
 
Forum Guests
  
Forum Guests
  
Forum Guests
 
 
Forum Audience
  
Forum Audience
  
Forum Audience

Special Thanks from BALCONY to

Conference Coordinator: Diane Masters
Web Services: Kevin R. Weaver
Writer: Kristina Siapkara
Forum Program Design: Nicholas Kapustinsky
Event Volunteers: Therese Crowley, Chere Rose de Sharon, Nesya Blue
BALCONY Co-Chairs: Alan Lubin & Bruce Ventimiglia
BALCONY Director: Lou Gordon

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