New York City's Independent Budget Office, in a report, has forecast that 2007 profits for Wall Street's banks and brokers will sink by more than 80% to their lowest level since 1994.

Profits for 2007 are expected to fall from $20.9 billion in 2006 to $3.2 billion in 2007.

The report says banks and brokerages make up 35% of all salaries and wages in New York City. Fallout from investments in the subprime mortgage market has resulted in write-downs of more than $150 billion, and more write-downs are expected.

Pressure on the sector is likely to result in the loss of 12,600 losses this year, and 7,600 next year, the report concluded.