Wall St could axe 20,000 jobs in crash

The Independent Budget Office (IBO) predicts profits for 2007 will hit their lowest since 1994, down from $20.9 billion in 2006.

The crisis could devastate New York where banks and brokerages account for 35% of all salaries. Big banks have already written down $150 billion on the subprime fiasco.

Around 12,600 jobs could go this year followed by 7600 next year.

"The economic situation is particularly precarious," said IBO director Ronnie Lowenstein.