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Wall Street jobs are leaving New York
Business Insider ^ | 02/10/2016 | Portia Crowe

Posted on 02/10/2016 7:54:35 AM PST by SeekAndFind

For many Goldman Sachs employees, commuting to work does not mean riding the subway down to the firm's waterfront headquarters at 200 West Street in New York City.

That's because a quarter of Goldman Sachs' staff work in lower-cost "strategic locations" around the world.

About 25% of the global investment bank's headcount is based in cheaper locations in the US and abroad, according to a presentation from CEO Lloyd Blankfein at the Credit Suisse Financial Services Forum on Tuesday.

Goldman Sachs had 36,800 staff at the end of 2015, which means 9,200 staff are based in these low-cost locations. By way of comparison, Goldman Sachs employs around 10,000 staff in New York and Jersey City.

The number of staff based in low-cost locations has increased by 3,000 since 2012, according to the presentation. Goldman's total headcount has increased 4,400 in the same period.

The majority of the "strategic location" jobs are in Bengaluru, or Bangalore, also known as the Silicon Valley of India. Goldman Sachs' headcount in the city stands at around 5,700.

Another big chunk, around 2,200, are in Salt Lake City, while there are around 730 staff in the Dallas area.

The bulk of these jobs are in tech. Goldman Sachs said Tuesday that 41% of its tech workforce now work in low-cost locations, up substantially from previous years.

Tech headcount went up 8% between 2012 and 2015, and about half of Goldman's new 2,800 new hires in 2015 were back-office positions in the technology, compliance, and operations divisions.

Morgan Stanley in January announced a new cost-saving plan that will likely see jobs moved to lower-cost centers, too.

"Too many employees based in high-cost centers are doing work that can sensibly be done in lower-cost centers," CEO James Gorman said at the time.

(Excerpt) Read more at businessinsider.com ...


TOPICS: Business/Economy; Society
KEYWORDS: jobs; newyork; outsource; wallstreet

1 posted on 02/10/2016 7:54:35 AM PST by SeekAndFind
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To: SeekAndFind

That’s the canary in Bernie Sanders’ coal mine. A Bernie election would see capital flight like we’ve never seen.


2 posted on 02/10/2016 7:55:51 AM PST by Bruce Campbells Chin
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To: SeekAndFind
I think we'll be seeing a LOT of shifts in America this next nine months

How people earn money is as important as if they earn any at all.

3 posted on 02/10/2016 7:56:59 AM PST by knarf (I say things that are true ... I have no proof ... but they're true.)
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To: SeekAndFind

I heard one of the largest “satellite” offices for GS is in Chappaqua, NY.


4 posted on 02/10/2016 7:59:27 AM PST by matginzac
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To: SeekAndFind

The priniciple of Comparative Advantage applies to GS and Wall St. as much as anything else. Many of their functions do not require physical presence in the NYC or other metro areas, and employees can live anywhere in the US and telecommute. But when it comes to living outside the US, then once again Trump is right about corporate inversions and the return of capital, which is far more important and impactive than whether GS puts a hundred researchers in Bangalore.


5 posted on 02/10/2016 8:02:11 AM PST by bigbob ("Victorious warriors win first and then go to war" Sun Tzu.)
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To: bigbob
Good

Atlanta , Dallas and Miami would be good replacements

6 posted on 02/10/2016 8:03:20 AM PST by scooby321
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To: SeekAndFind

To me, it’s all about the delay from the cable head to the location where their computers do their magic and the delay contained therein.


7 posted on 02/10/2016 8:03:24 AM PST by Gaffer
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To: Bruce Campbells Chin

I believe the article. It has nothing to do with Bernie. Many companies are moving their investment banking out of NY and often to other states in the US.

The tech/back office for investment banks is a lost cause. It will never be focused in the US if a company knows what it is doing. And Trump can’t bring those jobs back.


8 posted on 02/10/2016 8:07:19 AM PST by impimp
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To: impimp
Agree. My point is that a lot of companies are bottom line entities, and if Bernie tris to tax the hell out of them, more will simply leave.

Sort of an additional joke is that after every gets done demonizing Goldman Sachs, those same folks will probably be whining the loudest when they move more of their operations overseas.

9 posted on 02/10/2016 8:10:58 AM PST by Bruce Campbells Chin
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To: SeekAndFind

Painful to see the everything that made this country great go down the drain. Over regulation and those behind closed doors un-elected ABC regulatory Nazi political shakedown artists.


10 posted on 02/10/2016 8:12:09 AM PST by exPBRrat
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To: SeekAndFind

Liberal politicians and their policies are very capable of taking NYC to its knees.


11 posted on 02/10/2016 8:22:36 AM PST by fireman15 (Check your facts before making ignorant statements.)
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To: SeekAndFind

Interesting read from a year ago re NYC (and similar venues):

http://www.americanthinker.com/articles/2014/02/new_york_city_a_pay_more_get_less_sinkhole.html


12 posted on 02/10/2016 8:34:43 AM PST by Arm_Bears (Rope. Tree. Politician/Journalist. Some assembly required.)
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To: SeekAndFind
Well, it's not like the Marxist Mayor Bill de Blasio hasn't given these big money boys ample reasons to leave NYC. If you keep slapping the faces and persecuting the people who are paying 50 percent of the city's budget, you're shooting yourself in the foot. Even former Mayor Mike Bloomberg wasn't this stupid, but Bill de Blasio is.
13 posted on 02/10/2016 10:46:19 AM PST by MasterGunner01 ( To err is human, to forgive is not our policy -- SEAL Team SIX)
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To: MasterGunner01

Bloomberg was even worse; when the government gave all that money to the big financial institutions, Bloomberg and the governor were fighting to allow those same banks to pay out huge bonuses to their executives - because the city and state budget needed the income tax from them. He basically wanted US taxpayers to pay the bonuses so he could tax them - what a POS.


14 posted on 02/11/2016 3:42:40 AM PST by kearnyirish2 (Affirmative action is economic warfare against white males (and therefore white families).)
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