Bloomberg reports that the number of people employed in New York City in 'securities and commodities contracts intermediation and brokerage', which includes investment banking and securities dealing, fell to about 101,200 in March, a decline of more than 30% from the peak in December 2000 and the fewest in Bureau of Labor records dating to 1990.
'The desire is to drive the cost of executing a trade to its lowest point - this means automating the system and getting rid of the traders', Richard Bove, a bank analyst with Rafferty Capital Markets, said in a telephone interview. 'All they do today is hit buttons on computer screens. Twenty-five years ago they would be calling their buddies at different firms. It was a highly labor intensive effort'.
New York’s 'inhospitable' climate for commercial banks, along with falling demand for financial services and increasing automation is driving the decline in jobs, Bove said.
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image: © Emmanuel Huybrechts