« Back to Previous Page | Real Estate»Agents»Paul Brennan

Paul Brennan

Paul Brennan
Licensed Associate Real Estate Broker

2488 Main Street
Bridgehampton, NY 11932
Office: 631.537.4144
Mobile: 631.235.9611

2987 Montauk Highway
Sagaponack, NY 11962
Office: 631.537.4144
Mobile: 631.381.2887
Fax: 631.537.9104

CONTACT ME
email me »
download vCard »

In the News

Mortgage-crisis fallout could crimp LI sales, jobs

Nancy Buzzetta, vice president and an owner of Mercedes-Benz of Smithtown, is ebullient when discussing recent sales at the dealership.

"At the moment, our business has never been better," she said. "It is absolutely wonderful." But as she closes what she says will be a record month for sales, Buzzetta is keeping a wary eye on events miles away in Manhattan.

There, a crisis related to mortgage lending has caused a wave of layoffs in the securities industry and threatened annual bonuses, which are much bigger than salaries for many Wall Street workers. The turmoil "may affect us in the future as Wall Street folks spend less locally," Buzzetta said. "There may be a trickle-down."

In the past several months, more than a dozen large securities firms have announced plans to lay off thousands of workers, many of them in New York City. Moreover, in a report yesterday, State Comptroller Thomas DiNapoli said that, depending on how long the credit crunch lasts, job losses might "accelerate" next year.

Companies that have announced layoffs so far include Lehman Brothers, which cut 2,500 mortgage jobs nationally; Citicorp, which eliminated 1,600 New York City positions last spring; and Bear Stearns, which has shed about 900 jobs in its mortgage unit as well as in other areas including stock trading.

In addition to warning about job losses, DiNapoli said Wall Street bonuses probably will be smaller this year because third-quarter profits of the seven biggest financial firms based in New York City dropped nearly 65 percent from the year-earlier period. He said the decline might be "modest," however, because earnings for the first half of the year were strong, and bonuses usually drop at a slower rate than profits.

It isn't known how many Long Island residents work in the securities industry in Manhattan, which DiNapoli said employs about 188,200. But those workers' relatively high incomes and bonuses, as well as those of Wall Street employees who spend money on the East End, are vitally important to the Island's economy, according to Pearl Kamer, chief economist for the Long Island Association.

The effect of lower annual bonuses usually becomes visible on the Island in the first quarter of the following year, Kamer said. "It's generally [a decline in] high-end spending, which filters down to the entire economy," she said.

Because of demand by Wall Street workers for everything from jewelry to furs to nannies, home builders and gardeners, every new Wall Street job results not only in two more jobs in New York City, but 1.3 jobs in suburban areas, according to DiNapoli's office. Using that math, four lost jobs on Wall Street eventually would result in more than five lost positions on the Island.

Kamer said Wall Street's troubles might take their heaviest toll in Nassau County, where most Island residents who work on Wall Street live, but that the problems also would affect Suffolk. Already, consumer spending has dropped because of higher energy costs and problems related to subprime mortgages, causing September sales-tax revenue to drop 2.7 percent in Nassau and 2.2 percent in Suffolk from a year earlier, she said.

"I'm not overly optimistic about the Christmas selling season," Kamer added.

So far, any direct impact from Wall Street's problems on Long Island is hard to spot. At Hirshleifer's, a luxury clothing and accessories store at the Americana mall in Manhasset, "business - knock wood - has been strong," said Caryn Hirshleifer, a member of the family that owns the store. And at Morton's of Great Neck, a pricey purveyor of steaks and seafood, business also is strong, according to Roger Drake, a spokesman for the Chicago-based chain.

Problems on Wall Street might actually put money in the pockets of some Long Island residents seeking work as temporaries. Jim Moran, a financial practice director at Mergis Group, a division of the temp agency Spherion Corp., said he is seeing a pickup in demand for junior-level support jobs on Wall Street in areas such as trading and accounting.

One sign of trouble would be a slowdown in sales of homes in the Hamptons, a favorite place for Wall Streeters to escape on summer weekends. Paul Brennan, regional manager for the Hamptons for Prudential Douglas Elliman, said sales have indeed slowed in recent months.

But the phenomenon might be due to home prices that are simply too high, rather than fears about jobs or bonuses, Brennan said. And there's plenty of interest in rentals for next summer, which probably will increase if the home market stays slow, he said.

« Go back to In The News

575 MADISON AVENUE, NEW YORK, NY 10022. 212. 891.7000 © 2019 DOUGLAS ELLIMAN REAL ESTATE. ALL MATERIAL PRESENTED HEREIN IS INTENDED FOR INFORMATION PURPOSES ONLY. WHILE, THIS INFORMATION IS BELIEVED TO BE CORRECT, IT IS REPRESENTED SUBJECT TO ERRORS, OMISSIONS, CHANGES OR WITHDRAWAL WITHOUT NOTICE. ALL PROPERTY INFORMATION, INCLUDING, BUT NOT LIMITED TO SQUARE FOOTAGE, ROOM COUNT, NUMBER OF BEDROOMS AND THE SCHOOL DISTRICT IN PROPERTY LISTINGS SHOULD BE VERIFIED BY YOUR OWN ATTORNEY, ARCHITECT OR ZONING EXPERT. EQUAL HOUSING OPPORTUNITY. DRE # 01947727