Financial Giants Are Moving Jobs Off Wall Street (to lower-tax states)

New York Times ^ | July 1, 2012 | NELSON D. SCHWARTZ

[reaganaut1]

New York’s biggest investment houses are shifting jobs out of the area and expanding in cheaper locales in the United States, threatening the vast middle tier of positions that form the backbone of employment on Wall Street.

The shift comes even as banks consider deeper staff cuts here, which could undermine the state and city tax base long term.

“Places like New York or London will remain financial centers, but most of the players are taking a much harder look and asking whether they can move large numbers of jobs,” said James Malick, a partner at the Boston Consulting Group who advises banks on relocation. In addition to higher taxes in the New York region, employers face real estate and labor costs significantly above the national average.

Consultants say they have seen a sharp pickup in this trend, known as near-shoring, as opposed to offshoring overseas. Goldman Sachs, during a presentation to investors in late May, even boasted of the cost savings that relocating jobs can bring.

“Some functions need to stay in the United States, but they don’t need to be in New York City or near the client,” Mr. Malick said. And with most investment giants facing anemic revenue and more stringent regulation that cuts into trading revenues, relocation is more tempting than it was before the financial crisis.

Low-level jobs have already migrated to call centers and back offices overseas, while top-end traders and bankers are secure in the New York area, experts say. Instead, services like accounting, trading and legal support, and human resources and compliance are being shifted to places like Salt Lake City, North Carolina and Jacksonville, Fla.

[reaganaut1]

The comments at the NYT from irate NY leftists are funny.

[Arm_Bears]

Laws of economics and markets aren’t supposed to apply to Lefties.

[BwanaNdege]

I’ve often wondered why we folks in “fly-over” country have to pay the exorbitant salaries of corporate headquarters personnel based in NYC and other high cost areas.

It looks like some companies are beginning to get a bit of sense.

[nhwingut]

Translation: Move to conservative locales with lower taxes.

[junta]

Nothing more provincial than a New Yorker.

[OldEarlGray]

Quisling NyLon FreeTraitors are as Quisling NyLon FreeTraitors do, regardless of the geographical location of the “Ny”.

Got LIBORgate?

http://www.youtube.com/watch?v=mDbbrjxbJXc&;

The only place a good number of these frat-punks should be “moved” is PRISON - or maybe the end of a long rope after a short trial.

[jboot]

The article isn't surprising, and neither are the comments. The argument against boils down to "workers outside NYC are stupid and ignorant and companies that move into their communities will fail."

The elitism of the left never fails.

[jmcenanly]

This was less of a parody and more a statement of belief.

[USS Alaska]

Nothing more provincial than a New Yorker.

So true.

In the 80s I was in the Leasing business and sold the tax benefit portions to High Street {the place where the tax leveraged business thrived}.

The cost of everything in NY has always been outrageous, but New Yorkers were perversely proud of that.

They did, however, buy our Tax-Avoidance leases, because the income from the leases was shielded from all taxes, including state, city, local, county, federal, and any other money grubber that wanted a piece of the action.

Unfortunately, Reagan ended that business with his tax rate reduction which included loop hole closings.

I never understood how not paying taxes was a bad thing, but since I made money by selling that kind of paper, I view was a little slanted.

During the 70s and until the Reagan tax plan went into effect in the 80s, while I was making high 6 figure incomes, and the highest tax rate was 78%, I didn't pay a dime of federal income tax.

[BobL]

Interesting that this Garry Douyon lives in a $1,000,000 home on a $100k salary...

http://www.city-data.com/ny-properties/assessments/Brooklyn/L/Lafayette-Avenue-12.html

[woodbutcher1963]

Fidelity Investments did this about 10 years ago except they moved out of Boston. They still own a building in Beantown except they rented out all the floors except one or two where their corporate bigwigs have offices.

They moved everyone else up to Merrimack, NH. The cost of living savings and the elimination of income and sales tax to the employess was like giving everyone a 10% raise. They now have over 4000 employees in NH.

[Psalm 144]

“Translation: Move to conservative locales with lower taxes.”

The problem is that this metastasizes blue state mentality and political patterns. Carpetbaggers are a blight.