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The Lehman Brothers Effect

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What the reshaping of Wall Street means for New York.

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The collapse of Lehman Brothers and the makeover of American capitalism will affect a lot of people in a lot of ways, not least of all New Yorkers.

Mayor Mike Bloomberg said every Wall Street job creates 2 others and predicted tough times ahead for the 5 boroughs.

Gawker.com, a New York-based media gossip blog, declared an end to the era of bottle service - the practice of selling nightclub patrons bottles of booze at obnoxious markups in exchange for a place to sit. Nightlife impresarios are already working on a new hook; some are even entertaining the possibility of treating customers with something approaching respect.

And you can bet that bonus season will look markedly different than it did in 2006, when Goldman Sachs (GS) doled out $16 billion to employees.

But the trickling down of Wall Street's woes will likely hit those of more modest means, too. A September 18 article on Spiegel Online explained the situation thusly:

At the side entrance to Goldman Sachs on Pearl Street, limo chauffeurs sat waiting for their customers, still above in their office towers cowering over the accounts. "If they go under," said Rashid Amal, who works as a chauffeur for a firm called Excelsior, "then I will soon be out of a job, too."

Anecdotal, yes? But also probably frighteningly on the mark. Here, Minyanville guesses at just a few of the ways the city will reel from the fallout.


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No positions in stocks mentioned.

The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.

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