Deals & Deal Makers: Trade Group Says Securities Industry Is Set for Rebound
NEW YORK -- The Securities Industry Association sees 2002 as a "recovery" year for the brokerage and investment-banking sector.</br></br>In a conference call, Frank A. Fernandez, SIA's chief economist and director of research, said the securities industry hit a trough during the third quarter and is beginning a recovery in the fourth. Economic recoveries in the securities industry tend to happen about six to nine months before the overall U.S. economy, he said.</br></br>"For the first time in quite some time, we have some good news," Mr. Fernandez said. "The securities industry is in a recovery mode from a severe downturn."</br></br>Mr. Fernandez said the industry's turnaround was facilitated by the speed with which the industry responded to the events of Sept. 11, most notably how quickly the markets reopened.</br></br>World-wide holding-company profits of U.S. securities industry for 2001 are expected to reach $28.2 billion, down 51% from $58 billion last year. Profits for 2002 are expected to improve by 14%, however, to $32.1 billion.