Wall Street could face tens of thousands more job losses and see average pay drop by more than a quarter, a report from the New York Federal Reserve suggested yesterday.

In a comparison with previous financial sector downturns, the report said the current crisis shared characteristics with market problems in the late 1980s and early years of this century.

There were 460,000 jobs in New York finance in September, according to Moody’s Economy.com. A contraction of 12-17% would be equivalent to 55,000 to 78,000 lost jobs.

Financial Times