Wall Street's undertow: drugs and anxiety

By Tim McLaughlin

NEW YORK (Reuters) - Wall Street's push for record profits is ruining careers, tearing apart families and keeping drug dealers busy, mental health experts say.

While record bonuses make some Wall Street bankers feel invincible, others become emotional wrecks from pressure to perform and some hit rock bottom, experts say.

Harris Stratyner, a psychologist at Caron's New York Recovery Center, said some executives he treats are experimenting with cocaine, opiate-based drugs, Ecstasy and marijuana, as well as abusing alcohol.

"It's like they're chasing a dream. Even when they make tremendous profits, they're still worried," he said.

Alden Cass, a clinical psychologist who counsels Wall Streeters with drug addictions, said drug abuse and high anxiety are undercurrents to the current boom.

"When things are really good, they feel invulnerable," Cass said. "That can lead to adultery, substance abuse, problems with the law."

When it comes to profits, things are really good.

Six of the largest U.S. investment banks -- Goldman Sachs, Lehman Brothers, Citigroup, JPMorgan & Chase Co., Morgan Stanley and Bear Stearns -- combined for $17.6 billion in first-quarter profit this year. That's after shelling out $28.8 billion for pay and benefits, financial statements show.

Those profit and pay figures are more than double those seen in the first quarter of 2000, the last days before the dot-com bubble burst. New York's comptroller estimates Wall Street's 2006 bonuses will generate $1.6 billion in state tax revenue.

COCAINE AND HILLBILLY HEROIN

"To my knowledge, we have not seen an uptick in drug use," Morgan Stanley spokeswoman Jean Marie McFadden said.

The other five firms declined comment or did not return telephone calls.

But Cass said opiate abuse among his clients is rising and they openly talk about being hooked on prescription drugs like OxyContin, known as hillbilly heroin.

"That's what has changed from previous booms on Wall Street," he said.

Cass and Stratyner said their clients sometimes conceal their habits by taking prescription drugs they get for back surgery or sports-related injuries. The Internet has also expanded the black market for drugs.