Overview
- The New York State Comptroller reported $45.9 billion in broker‑dealer profits for the first half of 2026, which the office said on Tuesday suggests the industry could top $90 billion for the full year if the pace continues.
- Banks and trading firms driven profits higher through heavy investment in artificial intelligence, a 68% jump in underwriting fees led by large IPOs such as SpaceX, and elevated trading in volatile markets.
- The windfall has lifted pay and public revenues: average securities industry compensation was $561,770 in 2025, the 2025 bonus pool reached $49.2 billion, and the sector added $7.8 billion to New York City and $26.3 billion to state coffers.
- DiNapoli’s report warns of clear risks that could reverse gains, including rising 10‑year Treasury yields near 5.35%, the Iran war’s market shocks, stretched valuations in AI investments, and fewer staff and rules at regulators like the SEC and the Federal Reserve.
- The next tests for the run include major banks’ upcoming third‑quarter earnings and whether bond yields or a slowdown in dealmaking trim underwriting and trading revenue, which would quickly change tax and job outlooks for New York.