The collapse this weekend of the once venerable investment bank, Lehman Brothers, will cost 26,000 financial-sector workers their jobs.

On top of that, the take-over of Merrill Lynch by Bank of America will mean pink slips for approximately 24,000 of Merrill’s employees.

The two firms’ job liquidations will squeeze both the public and private sector of New York City, which relies heavily on the financial services industry.

Salaries are likely headed down as the supply of workers swells…

“Some of these professionals are not going to get what they usually get because they’re beggars, not choosers, and they’re competing with others,” Dolfino said, adding there will be “a lot less money for the state and the federal government.”

“We’re going to ride it out, but what it truly means for the tax base is that the government will have no option than to raise taxes,” he said.While the Middle East and Russia are looking to hire U.S. financial professionals, it’s doubtful that 50,000 will make the move to Moscow and Dubai…