Editing Wall Street (section)

===As an economic engine===
====In the New York economy====
Finance professor Charles R. Geisst wrote that the exchange has become "inextricably intertwined into New York's economy".<ref name="nyt20011012" /> Wall Street pay, in terms of salaries and bonuses and taxes, is an important part of the economy of [[New York City]], the [[Tri-State area (NY-NJ-CT)|tri-state metropolitan area]], and the [[Economy of the United States|United States]].<ref name="nyt20080726" /> Anchored by Wall Street, New York City has been called the world's most economically powerful city and leading [[financial center]].<ref>See: * {{cite web|url=https://www.reuters.com/article/us-survey-banks/new-york-surges-ahead-of-brexit-shadowed-london-in-finance-survey-idUSKBN1ZQ0BE|title=New York surges ahead of Brexit-shadowed London in finance: survey|first=Huw|last=Jones|publisher=Reuters|date=January 27, 2020|access-date=January 27, 2020|archive-date=January 27, 2020|archive-url=https://web.archive.org/web/20200127114217/https://www.reuters.com/article/us-survey-banks/new-york-surges-ahead-of-brexit-shadowed-london-in-finance-survey-idUSKBN1ZQ0BE|url-status=live}} * {{cite web|url=https://www.reuters.com/article/us-survey-markets/united-states-top-britain-second-in-financial-activity-think-tank-idUSKCN1LK2TM|title=United States top, Britain second in financial activity: think-tank|first=Huw|last=Jones|publisher=Thomson Reuters|date=September 4, 2018|access-date=September 4, 2018|archive-date=October 31, 2020|archive-url=https://web.archive.org/web/20201031103124/https://www.reuters.com/article/us-survey-markets/united-states-top-britain-second-in-financial-activity-think-tank-idUSKCN1LK2TM|url-status=live}} * {{cite news |url=http://www.citylab.com/work/2015/03/sorry-london-new-york-is-the-worlds-most-economically-powerful-city/386315/ |title=Sorry, London: New York Is the World's Most Economically Powerful City |first=Richard |last=Florida |newspaper=Bloomberg.com |publisher=The Atlantic Monthly Group |date=March 3, 2015 |access-date=March 25, 2015 |quote=Our new ranking puts the Big Apple firmly on top. |archive-date=March 14, 2015 |archive-url=https://web.archive.org/web/20150314002727/http://www.citylab.com/work/2015/03/sorry-london-new-york-is-the-worlds-most-economically-powerful-city/386315/ |url-status=live }} * {{cite web |url=http://www.businessinsider.com/top-8-cities-by-gdp-china-vs-the-us-2011-8 |title=Top 8 Cities by GDP: China vs. The U.S. |publisher=Business Insider, Inc |date=July 31, 2011 |access-date=October 28, 2015 |archive-date=October 16, 2015 |archive-url=https://web.archive.org/web/20151016233339/http://www.businessinsider.com/top-8-cities-by-gdp-china-vs-the-us-2011-8 |url-status=live }} * {{cite web |url=http://www.philippineairlines.com/news-and-events/pal-advises-passengers-come-airport-early-2/ |title=PAL sets introductory fares to New York |publisher=Philippine Airlines |access-date=March 25, 2015 |archive-date=March 27, 2015 |archive-url=https://web.archive.org/web/20150327052843/http://www.philippineairlines.com/news-and-events/pal-advises-passengers-come-airport-early-2 |url-status=dead }}</ref><ref>[https://www.longfinance.net/programmes/financial-centre-futures/global-financial-centres-index/gfci-28-explore-data/gfci-28-rank/ GFCI 28 Rank] {{Webarchive|url=https://web.archive.org/web/20201104141441/https://www.longfinance.net/programmes/financial-centre-futures/global-financial-centres-index/gfci-28-explore-data/gfci-28-rank/ |date=November 4, 2020 }} Accessed September 26, 2020.</ref> As such, a falloff in Wall Street's economy could have "wrenching effects on the local and regional economies".<ref name="nyt20080726" /> In 2008, after a downturn in the stock market, the decline meant $18 billion less in taxable income, with less money available for "apartments, furniture, cars, clothing and services".<ref name="nyt20080726">{{cite news |first=Patrick |last=McGeehan |title=City and State Brace for Drop in Wall Street Pay |newspaper=The New York Times |date=July 26, 2008 |url=https://www.nytimes.com/2008/07/26/nyregion/26pay.html |access-date=January 14, 2010 |archive-date=October 24, 2020 |archive-url=https://web.archive.org/web/20201024221802/https://www.nytimes.com/2008/07/26/nyregion/26pay.html |url-status=live }}</ref>

Estimates vary about the number and quality of financial jobs in the city. One estimate was that Wall Street firms employed close to 200,000 persons in 2008.<ref name="nyt20080726" /> Another estimate was that in 2007, the financial services industry which had a $70 billion profit became 22 percent of the city's revenue.<ref name="nyt20090223">{{cite news |first=Patrick |last=McGeehan |title=After Reversal of Fortunes, City Takes a New Look at Wall Street |newspaper=The New York Times |date=February 22, 2009 |url=https://www.nytimes.com/2009/02/23/nyregion/23wall.html |access-date=January 15, 2011 |archive-date=October 24, 2020 |archive-url=https://web.archive.org/web/20201024004341/https://www.nytimes.com/2009/02/23/nyregion/23wall.html |url-status=live }}</ref> Another estimate (in 2006) was that the financial services industry makes up 9% of the city's work force and 31% of the tax base.<ref>{{cite news |first=Heather |last=Timmons |title=New York Isn't the World's Undisputed Financial Capital |newspaper=The New York Times |date=October 27, 2006 |url=https://www.nytimes.com/2006/10/27/business/worldbusiness/27london.html |access-date=January 15, 2011 |archive-date=October 29, 2020 |archive-url=https://web.archive.org/web/20201029172402/https://www.nytimes.com/2006/10/27/business/worldbusiness/27london.html |url-status=live }}</ref> An additional estimate from 2007 by [[Steven Malanga|Steve Malanga]] of the [[Manhattan Institute]] was that the securities industry accounts for 4.7 percent of the jobs in New York City but 20.7 percent of its wages, and he estimated there were 175,000 securities-industries jobs in New York (both Wall Street area and midtown) paying an average of $350,000 annually.<ref name="nyt20071014" /> Between 1995 and 2005, the sector grew at an annual rate of about 6.6% annually, a respectable rate, but that other financial centers were growing faster.<ref name="nyt20071014" /> Another estimate, made in 2008, was that Wall Street provided a fourth of all personal income earned in the city, and 10% of New York City's tax revenue.<ref>{{cite news |first=Patrick |last=McGeehan |title=As Financial Empires Shake, City Feels No. 2 on Its Heels |newspaper=The New York Times |date=September 12, 2008 |url=https://www.nytimes.com/2008/09/13/nyregion/13rivalry.html |access-date=January 15, 2011 |archive-date=October 28, 2020 |archive-url=https://web.archive.org/web/20201028043325/https://www.nytimes.com/2008/09/13/nyregion/13rivalry.html |url-status=live }}</ref>  The city's securities industry, enumerating 163,400 jobs in August 2013, continues to form the largest segment of the city's financial sector and an important economic engine, accounting in 2012 for 5 percent of private sector jobs in New York City, 8.5 percent (US$3.8 billion) of the city's tax revenue, and 22 percent of the city's total wages, including an average salary of US$360,700.<ref>{{cite web |url=http://www.osc.state.ny.us/osdc/rpt7-2014.pdf |archive-url=https://ghostarchive.org/archive/20221009/http://www.osc.state.ny.us/osdc/rpt7-2014.pdf |archive-date=October 9, 2022 |url-status=live |title=The Securities Industry in New York City |first1=Thomas P.|last1=DiNapoli|first2=Kenneth B.|last2=Bleiwas |date=October 2013 |access-date=July 30, 2014}}</ref>

The seven largest Wall Street firms in the 2000s were [[Bear Stearns]], [[JPMorgan Chase]], [[Citigroup]], [[Goldman Sachs]], [[Morgan Stanley]], [[Merrill Lynch]] and [[Lehman Brothers]].<ref name="nyt20080726" /> During the recession of 2008–10, many of these firms, including Lehman, went out of business or were bought up at firesale prices by other financial firms. In 2008, Lehman filed for bankruptcy,<ref name="guardian20101007" /> [[Bear Stearns]] was bought by [[JPMorgan Chase]]<ref name="guardian20101007" /> forced by the [[Federal government of the United States|U.S. government]],<ref name="npr20080317" /> and [[Merrill Lynch]] was bought by [[Bank of America]] in a similar shot-gun wedding. These failures marked a catastrophic downsizing of Wall Street as the financial industry goes through restructuring and change. Since New York's financial industry provides almost one-fourth of all income produced in the city, and accounts for 10% of the city's tax revenues and 20% of the state's, the downturn has had huge repercussions for government treasuries.<ref name="nyt20080726" /> New York's mayor [[Michael Bloomberg]] reportedly over a four-year period dangled over $100 million in tax incentives to persuade Goldman Sachs to build a 43-story [[headquarters]] in the [[Financial District (Manhattan)|Financial District]] near the destroyed World Trade Center site.<ref name="nyt20090223" /> In 2009, things looked somewhat gloomy, with one analysis by the [[Boston Consulting Group]] suggesting that 65,000 jobs had been permanently lost because of the downturn.<ref name="nyt20090223" /> But there were signs that Manhattan property prices were rebounding with price rises of 9% annually in 2010, and bonuses were being paid once more, with average bonuses over $124,000 in 2010.<ref name="guardian20101007" />

====Versus Midtown Manhattan====
A requirement of the New York Stock Exchange was that brokerage firms had to have offices "clustered around Wall Street" so clerks could deliver physical paper copies of stock certificates each week.<ref name="usatoday20011024" /> There were some indications that midtown had been becoming the locus of financial services dealings even by 1911.<ref>{{cite news |title=WALL STREET BANKS CONNECTING UPTOWN; Financial District Notes This as American Exchange National Buys Into the Pacific. |newspaper=The New York Times |date=May 27, 1911 |url=https://www.nytimes.com/1911/05/27/archives/wall-street-banks-connecting-uptown-financial-district-notes-this.html |access-date=January 14, 2010 |archive-date=October 30, 2020 |archive-url=https://web.archive.org/web/20201030154328/https://www.nytimes.com/1911/05/27/archives/wall-street-banks-connecting-uptown-financial-district-notes-this.html |url-status=live }}</ref> But as technology progressed, in the middle and later decades of the 20th century, computers and telecommunications replaced paper notifications, meaning that the close proximity requirement could be bypassed in more situations.<ref name="usatoday20011024" /> Many financial firms found that they could move to [[Midtown Manhattan]], only {{convert|4|mi|km|0|spell=in}} away,<ref name="nyt20010909" /> and still operate effectively. For example, the former investment firm of [[Donaldson, Lufkin & Jenrette]] was described as a ''Wall Street firm'' but had its headquarters on [[Park Avenue]] in [[Midtown Manhattan|Midtown]].<ref>{{cite news |first=Heidi N. |last=Moore |title=DLJ: Wall Street's Incubator |newspaper=The Wall Street Journal |date=March 10, 2008 |url=https://blogs.wsj.com/deals/2008/03/10/the-little-bank-that-was-wall-streets-incubator/ |access-date=January 14, 2010 |archive-date=July 26, 2018 |archive-url=https://web.archive.org/web/20180726103746/https://blogs.wsj.com/deals/2008/03/10/the-little-bank-that-was-wall-streets-incubator/ |url-status=live }}</ref> A report described the migration from Wall Street:

{{blockquote|The financial industry has been slowly migrating from its historic home in the warren of streets around Wall Street to the more spacious and glamorous office towers of Midtown Manhattan. Morgan Stanley, J.P. Morgan Chase, Citigroup, and Bear Stearns have all moved north.|source=''USA Today'', October 2001.<ref name="usatoday20011024" />}}

Nevertheless, a key magnet for the Wall Street remains the [[New York Stock Exchange Building]]. Some "old guard" firms such as [[Goldman Sachs]] and [[Merrill Lynch]] (bought by [[Bank of America]] in 2009), have remained "fiercely loyal to the Financial District" location, and new ones such as [[Deutsche Bank]] have chosen office space in the district.<ref name="usatoday20011024" /> So-called "face-to-face" trading between buyers and sellers remains a "cornerstone" of the NYSE, with a benefit of having all of a deal's players close at hand, including [[Investment banking|investment bankers]], [[lawyer]]s, and [[accountant]]s.<ref name="usatoday20011024" />

====In the New Jersey economy====
{{main|Wall Street West}}
After Wall Street firms started to expand westward in the 1980s into [[New Jersey]],<ref>{{cite news |last=Williams |first=Winston |title=On the Jersey City Docks, Wall St. West |url=https://www.nytimes.com/1988/10/28/nyregion/on-the-jersey-city-docks-wall-st-west.html |access-date=June 28, 2013 |newspaper=The New York Times |date=October 28, 1988 |archive-date=April 6, 2019 |archive-url=https://web.archive.org/web/20190406213209/https://www.nytimes.com/1988/10/28/nyregion/on-the-jersey-city-docks-wall-st-west.html |url-status=live }}</ref> the direct economic impacts of Wall Street activities have gone beyond New York City. The employment in the financial services industry, mostly in the "back office" roles, has become an important part of New Jersey's economy.<ref>{{cite book |last=Scott-Quinn |first=Brian |title=Finance, investment banking and the international bank credit and capital markets : a guide to the global industry and its governance in the new age of uncertainty |date=July 31, 2012 |publisher=Palgrave Macmillan |location=Houndmills, Basingstoke |isbn=978-0230370470 |page=66 |access-date=June 29, 2013 |url=https://books.google.com/books?id=dv9TrTcZeGQC}}</ref> In 2009, the Wall Street employment wages were paid in the amount of almost $18.5 billion in the state. The industry contributed $39.4 billion or 8.4 percent to the New Jersey's [[gross domestic product]] in the same year.<ref name="njfinance">{{cite web |title=Finance |url=http://www.nj.gov/njnextstop/home/finance/ |work=New Jersey Next Stop ... Your Career |publisher=State of New Jersey |access-date=June 29, 2013 |archive-date=December 22, 2018 |archive-url=https://web.archive.org/web/20181222173747/https://www.nj.gov/njnextstop/home/finance/ |url-status=live }}</ref> The most significant area with Wall Street employment is in [[Jersey City]]. In 2008, the "Wall Street West" employment contributed to one third of the [[private sector]] jobs in Jersey City. Within the Financial Service cluster, there were three major sectors: more than 60 percent were in the [[Security (finance)|securities industry]]; 20 percent were in [[bank]]ing; and 8 percent in [[insurance]].<ref>{{cite web |title=Your Gateway to Opportunity, Enterprise Zone Five Year Strategic Plan 2010 |url=http://www.jcedc.org/Pages/JerseyCity%20UEZ_Economics.pdf |publisher=Jersey City Economic Development Corporation |access-date=June 29, 2013 |archive-date=October 28, 2013 |archive-url=https://web.archive.org/web/20131028234728/http://www.jcedc.org/Pages/JerseyCity%20UEZ_Economics.pdf |url-status=dead}}</ref>

Additionally, New Jersey has become the main technology infrastructure to support the Wall Street operations. A substantial amount of securities traded in the United States are executed in New Jersey as the [[data center]]s of electronic trading in the U.S. equity market for all major stock exchanges are located in [[North Jersey|North]] and [[Central Jersey]].<ref>{{cite news |last=Bowley |first=Graham |title=The New Speed of Money, Reshaping Markets |url=https://www.nytimes.com/2011/01/02/business/02speed.html?pagewanted=all |access-date=June 29, 2013 |newspaper=The New York Times |date=January 1, 2011 |archive-date=November 11, 2020 |archive-url=https://web.archive.org/web/20201111195546/http://www.nytimes.com/2011/01/02/business/02speed.html?pagewanted=all |url-status=live }}</ref><ref>{{cite web |title=NASDAQ OMX Express Connect |url=http://www.nasdaqtrader.com/content/Productsservices/trading/CoLo/ExpressConnect_factsheet.pdf |archive-url=https://ghostarchive.org/archive/20221009/http://www.nasdaqtrader.com/content/Productsservices/trading/CoLo/ExpressConnect_factsheet.pdf |archive-date=October 9, 2022 |url-status=live |publisher=NASDAQ OMX |access-date=June 29, 2013}}</ref> A significant amount of securities [[Clearing (finance)|clearing]] and [[Settlement (finance)|settlement]] workforce is also in the state. This includes the majority of the workforce of Depository Trust Company,<ref>{{cite web |title=DTC Operations Move to Newport, New Jersey |url=http://www.dtcc.com/downloads/legal/imp_notices/2012/dtc/ope/0481-12.pdf |archive-url=https://ghostarchive.org/archive/20221009/http://www.dtcc.com/downloads/legal/imp_notices/2012/dtc/ope/0481-12.pdf |archive-date=October 9, 2022 |url-status=live |publisher=The Depository Trust Company |access-date=June 29, 2013 |date=September 10, 2012}}</ref> the primary U.S. securities [[Depository bank|depository]]; and the [[Depository Trust & Clearing Corporation]],<ref>{{cite news |last=Gregory |first=Bresiger |title=DTCC Moves Most Operations to NJ |url=http://www.tradersmagazine.com/news/dtcc-moves-most-operations-to-nj-110623-1.html |access-date=June 29, 2013 |newspaper=Traders Magazine |date=December 14, 2012 |archive-date=September 1, 2017 |archive-url=https://web.archive.org/web/20170901130140/http://www.tradersmagazine.com/news/dtcc-moves-most-operations-to-nj-110623-1.html |url-status=dead}}</ref> the parent company of National Securities Clearing Corporation, the Fixed Income Clearing Corporation and Emerging Markets Clearing Corporation.<ref>{{cite web |title=Clearing Agencies |url=https://www.sec.gov/divisions/marketreg/mrclearing.shtml |publisher=U.S. Securities and Exchange Commission |access-date=June 29, 2013 |archive-date=March 26, 2018 |archive-url=https://web.archive.org/web/20180326175221/https://www.sec.gov/divisions/marketreg/mrclearing.shtml |url-status=live }}</ref> Having a direct tie to Wall Street employment can be problematic for New Jersey, however. The state lost 7.9 percent of its employment base from 2007 to 2010 in the financial services sector in the fallout of the [[subprime mortgage crisis]].<ref name="njfinance" />

====Competing financial centers====
{{Main|Financial center}}

Of the street's importance as a financial center, ''[[New York Times]]'' analyst [[Daniel Gross (journalist)|Daniel Gross]] wrote:

{{blockquote|In today's burgeoning and increasingly integrated global financial markets&nbsp;— a vast, neural spaghetti of wires, Web sites and trading platforms&nbsp;— the N.Y.S.E. is clearly no longer the epicenter. Nor is New York. The largest mutual-fund complexes are in [[Valley Forge, Pennsylvania|Valley Forge, Pa.]], [[Los Angeles]] and [[Boston]], while trading and money management are spreading globally. Since the end of the cold war, vast pools of capital have been forming overseas, in the Swiss bank accounts of Russian oligarchs, in the Shanghai vaults of Chinese manufacturing magnates and in the coffers of funds controlled by governments in Singapore, Russia, [[Dubai]], [[Qatar]] and Saudi Arabia that may amount to some $2.5 trillion.|Daniel Gross in 2007<ref name="nyt20071014" />}}

An example is the alternative trading platform known as [[BATS Global Markets|BATS]], based in [[Kansas City]], which came "out of nowhere to gain a 9 percent share in the market for trading United States stocks".<ref name="nyt20071014" /> The firm has computers in the [[U.S. state]] of [[New Jersey]], and only two salespeople in New York City; the remaining 33 employees work in a center in Kansas.<ref name="nyt20071014" />