Underwriting Fees Plummet in First Half of the Year

The amount of revenue Wall Street firms raised by underwriting new issues of stock and bonds plunged sharply in the first half of the year, increasing the financial pressure on brokerage houses that are still reeling from the 1987 stock market crash.

Fees from bringing new stock and bond issues to the market in the first half dropped 32% despite a drop of only about 3% in the volume of these securities, according to Securities Data Co., which tracks the performance of Wall Street companies.