Posted by Leonard Steinberg on June 5th, 2014 Reports today are surfacing that the trading businesses inside the biggest global investment banks are expected to suffer job losses (possibly in the thousands) by the end of 2014: what does this mean for the New York real estate market? Bankers increasingly worry that the downturn in trading that started last year is part of a broader sea change. Tough new rules on risk and capital, along with a sharp slowdown in market volatility, have made trading less profitable for big banks in the past few years, and banks are coming to grips with the possibility that conditions will remain weak long into the future. Thankfully New York is no longer entirely reliant on the banking industry, although it represents a strong and potent group of real estate buyers and renters, especially on the high end. New York has other major industries including technology, healthcare, media and the entertainment industry. Will the traders who lose their jobs leave New York? Will they no longer be able to afford their homes and lifestyle? Or will they possibly enter into other fields…….maybe even real estate?  I have already seen many from the financial sector entering into real estate: they bring with them a super-level of intelligence and education, confidence, motivation, a different perspective of how to do things, tech-savvy…..and an A-grade rolodex. Looking at the many new faces at URBAN COMPASS, I am reminded how a strong work ethic, a great rolodex and the will to work hard can produce great real estate brokers. I am not too concerned: I think this transition is part of an evolution whereby traders are absorbed into other industries. And that could be good for real estate AND the real estate industry!