Wall Street Roundup: Wall Street profits down. Fannie and Freddie as customers

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Unemployment rate down. The unemployment rate edged down to 9.5% in June, but largely because of the large number of people who dropped out of the labor market, the Labor Department reported.

Wall Street profits could be down. With earnings season around the corner, analysts are predicting that profits at Wall Street banks could be down due to the increased risk aversion in the markets, and also because of declining revenues from advisory work.

Fannie and Freddie are good customers. The mortgage-financing giants Fannie Mae and Freddie Mac paid more fees to Wall Street banks than any other customers, new analysis shows.

Backing off on hedge funds. New York’s governor is backing away from an effort to tax hedge fund managers in New York who commute in from other states after some lobbying from New York City’s mayor.

-- Nathaniel Popper in New York