Wall Street Struggles to Contain Costs as Pay Pressures Escalate
- Citi boosts pay for many bankers even amid dealmaking slump
- ‘CEOs talk recession but are acting for growth,’ Mayo says
Photographer: Scott Eells/Bloomberg
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Even after eliminating staff, cutting bonuses and tapping an army of robots to replace legions of workers, Wall Street is still bracing for higher costs in coming months — especially those tied to pay.
The country’s six biggest banks are expected to spend a combined $183 billion on compensation and personnel expenses this year, driving up overall costs to a record $320 billion. That will crimp profits at a time many investors have grown increasingly worried about higher credit losses and a drop in deposits.