The iconic American investment banking company, Goldman Sachs, has reportedly joined the ranks of those considering a move away from the ultra-liberal New York City.
The multi-billion dollar investment bankers are currently planning to move their asset management division out of New York City and set up shop somewhere in the deep south to save on overhead.
According to Bloomberg, “Goldman Sachs Group Inc. is weighing plans for a new Florida hub to house one of its key divisions, in another potential blow to New York’s stature as the de facto home of the U.S. financial industry.”
The news outlet reported that “Executives have been scouting office locations in South Florida, speaking with local officials and exploring tax advantages as they consider creating a base there for its asset management arm, according to people with knowledge of the matter.”
The company has already been operating in a remote capacity during the pandemic, and that move is a large part of what promoted leadership to consider moving out of New York City to try and save a few dollars on taxes and other fees.
“Goldman may yet decide against centering asset management in Florida, where it would join a growing list of firms seeking tax and lifestyle advantages,” Bloomberg reported. “It also may opt for another destination like Dallas, where it has been accelerating its expansion, the people said.
“The deliberations at the Wall Street icon, often a trendsetter for the industry, adds to the cloud over New York’s future. As restaurants and stores fight to survive, the city is trying to stem the flight of white-collar jobs to states with lax tax regimes and lower costs of living.”
States such as Florida and Texas have seen a massive influx in residents from other much more left-leaning areas as tax laws, and more recently COVID-19 regulations, have restricted the movements of their, presumably predominately, liberal residents.
Florida has been flooded with New Yorkers who are looking for a more hospitable environment and lower taxes. The irony is not lost on the residents of states that have consistently voted in Republicans to their highest offices. Despite the first-hand knowledge of what liberal policies have done to their states, many move to red states and still continue to vote for the same leftist policies that got them into hot water in the past.
Both California and New York are suffering a mass exodus, and seem as yet to be in complete denial as to what is driving away their residents.
According to Bloomberg, “The firm’s newly reconfigured asset-management division pulls in about $8 billion in annual revenue” as well as employing “almost 41,000 people at the end of September.” While they don’t disclose their division’s headcount, “Asset management has accounted for about a quarter of the firm’s revenue in recent years.” Relocation of the division would serve as a potential blow to New York’s stature and standing as the “de facto home of the U.S. financial industry.”
“We are executing on the strategy of locating more jobs in high-value locations throughout the U.S., but we have no specific plans to announce at this time,” a spokesperson told Bloomberg News in an emailed statement, however, the publication reported that Dallas, Texas is also thought to be in the running of possible locations.
Hedge fund manager and comedy club owner James Altucher said in August that he believed “The Time-Life building doesn’t need to fill up again. Wall Street can now stretch across every street instead of just being one building in Manhattan.” Iconic comedian Jerry Sienfield disagreed, however.
“Oh, shut up,” Seinfield said to Altucher. He says he knows people who have left New York for Maine, Vermont, Tennessee, Indiana. I have been to all of these places many, many, many times over many decades. And with all due respect and affection, Are…You… Kidding… Me?!”
While Seinfield’s sparkling commentary on middle America might be reassuring to some, Fox Business reported that amid COVID-19 lockdowns, rental listings climbed by almost 15 percent, and vacancies increased, overall, by five percent in the month of September all while landlords are offering new tenants “the largest share of concessions on record.”