Wall Street Bonuses Expected to Shatter Records Amid Soaring Profits

Wall Street is poised to deliver record-breaking bonuses in 2025, driven by soaring profits and robust trading revenues amid a resurgence in dealmaking and market activity. New York State Comptroller Thomas DiNapoli reported that profits for 130 NYSE-member firms reached $30.4 billion in the first half of the year, with projections indicating potential full-year profits exceeding $60 billion, surpassing last year's $49.9 billion. Compensation expenses increased nearly 10%, signaling that bonuses could surpass last year's record average of $244,700, with investment banking and equities businesses notably benefiting from the market rebound. Despite economic uncertainties including interest rates, inflation, and global trade policies, Wall Street's strong performance has significantly boosted tax revenues, supporting critical public services in New York City and State. Major banks such as Morgan Stanley, JPMorgan Chase, Goldman Sachs, and Citigroup reported record trading revenues, driven by portfolio reorganizations and AI-related deals. While cost management remains important, the substantial increase in profits allows for higher compensation without compromising financial health.