The princes of Wall Street lose their crowns and tighten their belts.
Massive layoffs and diminishing bonus checks promise to put a damper on the high-flying patterns of the untouched stock brokers, money managers, investment bankers and hedge fund geniuses. Bloomberg Businessweek described Wall Street as being in “contraction mode. ” layoffs of thousands of workers It’s come or it will come and the rewards – the money that brokers and bankers funnel into big spenders – will be a fraction of last year’s.
Many who kept their jobs testified Bonuses have been cut almost in half.
“Wall Street is the only industry in which a seven-figure bonus is a moral and financial affront,” said Robert Frank, CNBC wealth correspondent and author of “Richistan,” to The Post. “I’ve heard people who got $3 million in bonuses yell at their bosses and threaten to leave — the cuts are good for them. And the chiefs answer, “Leave to go where?” All the companies on Wall Street are dealing with the same dismal financial landscape.”
They also already take financial cover.
“Starting four months ago, everyone I know on Wall Street hardened up. St. Bart’s holiday was reduced to a day. An Aspen trip is done with one female friend,” a Manhattan restaurateur told The Post. “Most men on Wall Street don’t want to stay on Wall.” Wall forever. They want to semi-retire, invest in hotels, bars and restaurants, and make money by engaging in fun, social things. But you need zero to do that. So those dreams were suddenly postponed.”
He added that there is a ripple effect that is not limited to high-end restaurants only. “My shame and my escort friends feel it. Men in New York are becoming less generous,” said the restaurateur. “A lot of sex workers have gone to Florida where there is more money.”
Make no mistake: The giants of Wall Street haven’t given up on luxury all together.
“In general, people on Wall Street are still buying, but they’re not spending as much,” said Faisal Malik, owner Auto Set Status In Staten Island, according to The Post. “People who look for G Wagons usually go for the higher-end model” — for now, that would be the G63, which has a price tag of around $250,000. Now they may choose [Cadillac] Escalade. You can buy it for less than 100k. It’s very different.”
However, some sacrifices simply cannot be made. A fine-watch dealer told The Post how his industry has “seen a huge decline” as Wall Streeters hang on to their vintage watches for another year. One of the most famous was the Rolex Daytona, which can cost close to $50,000.
“a [Wall Street] “A man wouldn’t buy a Breitling — he’d never show up to a meeting in one,” said Frank. “So he’ll stick with what he already has.”
A source told The Post how, in times of flux, his friend on Wall Street would usually pick up the diner tag. But when they discussed meeting recently at Nobu, his friend texted him: “Nobu costs a lot, though. Are you trying to be more cost-conscious…would you if I split?”
Their wings have also been clipped.
said Mike Giordano, a partner Cirrus Aviation Services, a private charter aircraft company. “Now, they fly first class and drive to the Hamptons. They don’t renew their memberships in private jet clubs. That fee is at least $15,000 and about $5,000 an hour to use the plane.”
Having said that, Giordano noted, “The big guys keep calling me to buy planes. I have seven Gulfstream channels in advance purchase.”
Boat sales, too, are on hold unless you’re a “big guy.”
“There is a connection between Wall Street and yacht sales,” a Fort Lauderdale-based yacht broker told The Post. But it mainly affects yachts of 50 feet or shorter. They sell for $1 million and go up to $7 million. People who buy boats that are 60 feet and up, are not affected. There is more stock [than there was last year] From 50 feet and down. People wait and see what happens.”
Day-long yacht charter trips have also taken a hit: “Last year, guys would come down and spend $15,000 and rent a boat for the afternoon. This year, they’re more likely to hang out in the pool and save $15,000. I think that’s related to what’s going on in Wall Street “.
It is also a matter of where they are going.
This winter “cash-strapped” Wall Street dealers have skipped Aspen to Park City or Vail, Colorado, sources said. While still pricey and luxurious, the latter two are less expensive than Aspen where a guest room at the St. Regis about $2,500 a night.
Closer to home, Manhattan apartment contracts for sale It decreased by 29 percent in the fourth quarter of 2022. “the people [who were] “The thought of moving from three-bedroom apartments to townhouses is another,” said Frank. They decided not to make a big swing in 2023.
“This is going to be a tough summer for Hamptons property sales,” he predicted.
How much worse could it get?
“They can afford this for a while,” Frank of Wall Street suddenly predicted. The problem is if this [downturn] It continues next year. Then they’ll consider whether or not to take a vacation or not to make renovations to their Hamptons home. The rewards should come back to them for maintaining their way of life.”