Everyone how Wall Streeters suffer from cut bonuses

Wall Street princes are losing their crowns and tightening their belts.

Massive layoffs and cuts in bonus checks promise to thwart the high-flying style of stockbrokers, money managers, investment bankers and once untouchable hedge fund geniuses. Bloomberg BusinessWeek has described Wall Street as a “spending cut mode”. Thousands of layoffs have come or are coming, and bonuses – money that turns brokers and bankers into spendthrifts – are reported to be several times smaller than last year.

Many who kept their jobs saw bonuses cut by almost half.

“Wall Street is the only industry where a seven-figure premium is considered morally and financially offensive,” Robert Frank, CNBC correspondent and author of Richistan, told The Post. “I’ve heard from people getting $3 million in bonuses and they’re yelling at their bosses threatening to quit – the cuts matter to them. And the authorities replies: “Where to go?” All firms on Wall Street are dealing with the same bleak financial situation.”

They are also already accepting financial cover.

“Since four months ago, every Wall Street guy I know has tightened up. St. Barth’s vacation was shortened by a day. The trip in Aspen is over and there’s one less girl on it,” a Manhattan restaurateur told The Post. “Most Wall Street guys don’t want to stay on Wall Street forever. They want to retire, invest in hotels, bars and restaurants, and earn money by participating in fun social things. But this requires a scratch. So those dreams are suddenly put on hold.”

He added that there is a seepage effect that affects more than just high-end restaurants. “My strippers and escort friends feel it. Guys in New York are less generous,” the restaurateur said. “Many sex workers have gone to Florida, where there is more money.”

Make no mistake: Wall Street’s titans haven’t given up on luxury all together.

“Generally, Wall Street people are still buying but spending less,” Faisal Malik, owner of the Status Auto Group in Staten Island, told The Post. “People looking for G Wagons usually go for the more expensive one” – for now, that would be the G63, which sells for around $250,000. “Now they can choose [Cadillac] Escalade. You can buy it for less than 100k. It’s significantly different.”

However, some sacrifices simply cannot be made. A major watch retailer told The Post how his industry has “taken a huge downturn” as Wall Streeters hold on to their old watches for another year. One of the most popular was the Rolex Daytona, which can cost nearly $50,000.

“AND [Wall Street] the guy is not going to buy a Breitling – he will never show up to a meeting in it, ”Frank said. “So he’s just going to stick with what he already has.”

One source told The Post that in times of prosperity, his Wall Street buddy usually pays for dinner. But when they recently discussed meeting at Nobu, a friend wrote to him: “Nobu is expensive. Trying to be more cost-conscious… will it work if you split up?”

Other high-flyers also had their wings clipped.

“A junior managing director who just lost his job or received a cut bonus does not fly a helicopter to the Hamptons or fly privately,” said Mike Giordano, partner at Cirrus Aviation Services, a private jet charter company. “Now they are flying first class and going to the Hamptons. They do not renew membership in private flying clubs. They receive at least $15,000 in fees and about $5,000 an hour for using the aircraft.”

At the same time, Giordano noted: “The big guys are still calling me to buy planes. I have seven Gulf Stream aircraft on pre-purchase.”

Boat sales are also on hold unless you’re a “big guy”.

“There is a correlation between Wall Street and yacht sales,” a Fort Lauderdale-based yacht broker told The Post. “But it’s primarily about yachts that are 50 feet or shorter. They sell for a million dollars and go up to 7 million. People who buy boats 60 feet or more in length are not affected. Have more inventory [than there was last year] 50 feet and below. People are waiting and seeing what is happening.”

One-day yacht charters have also been hit: “Last year, the guys would come and spend $15,000 and rent a boat for the day. This year they will most likely spend time in the pool and save their $15,000. I think it has to do with what’s going on on Wall Street.”

It’s also a matter of where they go.

Financially struggling Wall Streeters have moved from Aspen to Park City or Vail, Colorado this winter, sources say. While the latter two are still expensive and luxurious, they are cheaper than Aspen, where a room at the St. Regis costs about $2,500 per night.

Closer to home, contracts for the sale of apartments in Manhattan fell 29 percent in the fourth quarter of 2022. [who were] Thinking about moving from three-bedroom apartments to townhouses, I have my doubts,” Frank said. “They decided not to make a big move in 2023.

“It’s going to be a tough summer for Hampton real estate sales,” he predicted.

How much worse can things get?

“They can wait it out for a while,” predicted Frank of Wall Street, who suddenly became less wealthy. “The problem is, if it’s [downturn] continues next year. Then they are going to shorten their vacation or not make repairs to the Hampton house. The bonuses need to come back so they can continue their lifestyle.”