Even after the bailout and gradually improving profits and business, big banks are still not making as much as they had hoped. Because of this, analysts are now rethinking their expectations for 2010. Trading stocks and bonds is down significantly from last year, and one expert "predicts that annual revenue from Wall Street’s main businesses will drop 25 percent, to around $42 billion in 2010, from $56 billion last year." Expectations are low for this third fiscal quarter. Various profit estimates for large businesses like Goldman-Sachs are down and institutions as a whole are scaling back their involvement in areas. One expert even believes employee compensation will drop.
However, this is not quite as dire as it seems. While profits are down this quarter, they are still just that- profits. Businesses on Wall Street as a whole are still making money and definitely not losing any again just yet.
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