Street bonuses fell by a quarter last year, according to the latest official estimate by US regulators.
That is twice the rate American officials had suggested only last week, and is set to be followed by 4,300 job cuts on the Street this year, according to New York City’s Independent Budget Office (IBO).
The IBO is also forecasting that overall pay on Wall Street will fall by 7.5 per cent in 2012.
The lower fall in total pay shows that the burden of firms’ fixed costs is increasing as regulators turn up the pressure on variable bonuses.
The higher costs and lower profits have also prompted the IBO to slash its job creation forecasts for Wall Street from 38,800 to 22,000 for 2012.
A knock-on effect on tax revenues is also anticipated from 2013 onwards.