Our shared yearning to believe that the Trump Administration will somehow overcome the breathtaking chaos it has created to get a tax reform bill through Congress has now become so mystically powerful that even Deutsche Bank might be forced to hand out actual bonuses.
After years of job cuts and declining salaries, Wall Street compensation is on track to rise 3.8 percent this year, according to a report from New York state Comptroller Thomas DiNapoli. That figure coincides with first-half profits in 2017 that have totaled $12.3 billion, a 32 percent jump from the same period in 2016.
DiNapoli said a key trigger in the rise of profits for broker-dealers registered at the New York Stock Exchange has been stock market action. The market has rallied strongly under Trump, with the Dow industrials up more than 30 percent since shortly before the election.
The "Trump Bump" may or may not be real, but it seems like at the very least its perceived effect will be made manifest in the pockets of of Wall Streeters come bones season. But what will things look like going forward if this already rickety tax plan starts to run off the rails due to populist outrage, a bad presidential tweet or more Mueller indictments? This whole market has been nitro-fueled by the notion that corporate tax cuts are coming down the pike...what happens when they get caught in batshit Trumpian traffic?
But hey, you gotta take some money off the table when you're hot.