Wall Street Banks And Tech Companies Are Fleeing New York And California

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They’ll destroy the red states.

Wall Street Banks And Tech Companies Are Fleeing New York And California

By Jack Kelly, Forbes, February 25, 2021:

There is a steady exodus of businesses moving out of New York and California and the pandemic may have completely changed the way companies operate. Now that working from home has taken its hold, the trend offers CEOs options. No longer do they have to pay for expensive real estate in New York City or San Francisco. They can have people working remotely or relocate jobs to locations that are less costly.

Major cities, such as New York, Los Angeles and San Francisco, have punishingly high tax rates and lack business-friendly policies. With pushes to defund the police and cutting down on prosecutions, cities have been plagued by crime, violence, looting and disorder. Government officials have demonstrated flagrant disregard for their citizens by haphazardly ordering businesses and schools to shutdown with little warnings.

The flight out of New York has been in the works before the pandemic. Wall Street executives previously relocated thousands of jobs to states outside of New York, in an effort to cut costs. Credit Suisse, Goldman Sachs, Morgan Stanley, Barclays, UBS, Citigroup, Alliance Bernstein and an array of other financial institutions have established and aggressively staffed hubs in Florida, North Carolina, Salt Lake City, Dallas, Nashville and other less expensive locations compared to New York.

A combination of high taxes, poor governance on the part of New York City Mayor Bill de Blasio, ever-increasing crime, capricious business and school shutdowns and a resurgence in Covid-19 cases contributed to Goldman Sachs’ recent decision to move its large money management division to Florida.

The absence of a state income tax, plus warm weather and a business-friendly mindset, has already prompted hedge fund billionaires and native New Yorkers Paul Singer and Carl Icahn to relocate their respective businesses to Florida. Leon Cooperman, the billionaire former hedge fund manager and CEO of Goldman Sachs Asset Management, previously moved to Florida. He said of his move, “I suspect Florida will soon rival New York as a finance hub,” due in part to the “Tax and Spend” policies of New York.

A number of bankers told their boss, Ken Moelis, the CEO of his eponymous investment bank Moelis, that they wanted to leave New York City for Florida. In response to their request, Moelis replied, “We’re a talent business. I want to attract, I want to motivate and I want to retain the greatest talent in the world. And if that talent wants to do it in Florida, that’s where we’ll support them.” Moelis, according to a Bloomberg interview, will consider opening or expanding offices, as his employees decide to relocate to cities where tax rates are lower, the climate is warmer and the government is friendly to business.

Charles Gasparino, the long-time chronicler of Wall Street, wrote in the New York Post, “Many other banks and financial businesses are now seeking to move out of the once-friendly confines of New York City, which isn’t so friendly anymore.” He added, “The trend has been a slow burn over the past two decades, but now it has kicked into high gear thanks to [Covid-19], spiraling costs and a feckless political class that runs this city and state.” Gaparino said about JPMorgan’s CEO, “[Jamie] Dimon, I am told, vetoed a plan several years back to move a swath of the bank to south Florida because he didn’t think the schools were good enough. Now, he appears to have changed his mind and is considering plenty of relocations outside New York City.”

It’s not just Wall Street firms. While the banks are primarily relocating to Florida and other Southeast locations, tech companies are going to Texas.

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Elon Musk, having battled officials in California, said that he’s moving to Texas. Musk told the Wall Street Journal, “For myself, yes, I have moved to Texas.” He continued, “We’ve got the Starship development here in South Texas where I am right now. We’ve got big factory developments just outside of Austin for Giga Texas as well.”

The New York Times reported, “California, with its steep housing costs, raging wildfires and strict business regulations, has been losing residents to other states, with Texas as the most popular exodus destination. Of more than 653,000 people who left California last year, about 82,000 went to Texas, more than any other state, according to census figures.”

Hewlett-Packard, with its cofounders as two of the original grandfathers of Silicon Valley, who started their company in a Palo Alto garage back in 1939, will relocate its headquarters from San Jose, California to Houston.

Drew Houston, the CEO of Dropbox, said the company is moving to Austin and remote work will be the new standard practice. He’ll offer “Dropbox Studios” in a number of cities for workers who want to go into an office.

Oracle, led by billionaire Larry Ellison, moved its headquarters to Austin because of California’s high tax rate, exorbitant living costs and the ability to have remote workers. The tech giant offers employees the option of either working remotely or selecting which office they’d prefer working at.

Unless city and state elected politicians make changes, the flight out of high-taxed, expensive cities will continue. As corporations and well-paid, white-collar workers leave, the cities will bear the brunt of plummeting tax revenue. The decline will force mayors to drastically cut costs. This will include massive layoffs of teachers, police officers, firefighters, garbage collectors and other municipal workers.

With less services, the cities become dirtier, crime increases and living conditions worsen. This will prompt even more people to move. A cascading downward spiral could occur, making places like New York dangerous and inhospitable. It could become just like in the dark days of New York in the ‘70s. It took over a decade to turn things back around.

— 12/14/20: It was inaccurately stated that Deutsche Bank announced it is moving its workers out of NYC, rather than that staff could conceivably work remotely or from hubs.

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V.V.
V.V.
3 years ago

You don’t NEED New York! You need people in America living where they can prosper and protect their Country.

AR154U☑ᵀʳᵘᵐᵖ DEPLORABLE 2020
AR154U☑ᵀʳᵘᵐᵖ DEPLORABLE 2020
3 years ago

They are NOT FLEEING,….. THEY’RE SPREADING!!
comment image

ladywarrior
ladywarrior
3 years ago

Exactly! See my post above.

Andrew
Andrew
3 years ago

Perhaps this is yet another diabolical plan by Democrats the deep state and the oligarchs to export their populations to the big red states Florida and Texas and flip both thus extending their evil regime to those two for now relatively free and prosperous jurisdictions.

Underzog
Underzog
3 years ago
Reply to  Andrew

Yeah, it sure works that way.

ladywarrior
ladywarrior
3 years ago
Reply to  Andrew

Yep…see my post above of what happened to Las Vegas and NV…was bright “Red”…now a sanctuary city dirty grayish Blue…and full of “Refugees”.

Warmac9999
Warmac9999
3 years ago

NYC is the prime example of how cities die. It is no longer survivable. People are leaving. Businesses are closing or leaving. Real estate values are cratering. Crime and poverty is now a dominant feature of daily life. The politicians are utterly corrupt socialists/communists. There is no way back.

patd
patd
3 years ago
Reply to  Warmac9999

I believe there was an “Escape From NY” and one form LA theme once…it’s come to pass.

Warmac9999
Warmac9999
3 years ago
Reply to  patd

What I wonder is who is maintaining the mammoth skyscrapers. What happens to a vacant 50 story building when the structure is no longer checked or serviced? How long will it last when turned over to bankruptcy courts, and then left exposed to the rats, insects and the criminals/homeless. A building has to be supported by money and knowledgeable people otherwise it deteriorates and relatively quickly.

patd
patd
3 years ago
Reply to  Warmac9999

I’ll be laughing about the lost revenue for sure!!!!!

Je Suis Prest
Je Suis Prest
3 years ago
Reply to  patd

Will you still be laughing when YOUR taxes double, triple, quadruple?

Marrkedman
Marrkedman
3 years ago
Reply to  Warmac9999

It is pretty bad. NYC in many areas looks like a dystopia. Restaurants are forces to feed people at tables right next to the gutter and all the traffic. It is insane. And I really hope that states pay attention to who is moving in.

The lefties made their bed, let them sleep in it with all of the vermin that they brought along.

Je Suis Prest
Je Suis Prest
3 years ago
Reply to  Marrkedman

Now, they are bringing it to YOUR town.
Do you really believe that they will leave their liberal idiocy behind?

Marrkedman
Marrkedman
3 years ago
Reply to  Je Suis Prest

That is my point. We don’t want or need their dollars or corruption. We are doing OK, they are not. Who’s fault is that?

Michael Goldman
Michael Goldman
3 years ago
Reply to  Je Suis Prest

Someone brought a great point months ago. If you move from a blue state and you were a registered socialist, you don’t vote for 8 years.

Je Suis Prest
Je Suis Prest
3 years ago

Personally, I’d make it “life-time”.

gman3b
gman3b
3 years ago
Reply to  Warmac9999

Buildings and property will be purchased by foreign interests who will continue to buy up the area and change its culture. Happened in London; it’ll happen in NYC.

Michael Goldman
Michael Goldman
3 years ago
Reply to  Warmac9999

I don’t know what the landlords will do, but they will be infested with Illegal Criminal invaders before you know it. I would expect a bunch of them to be bought by liberal scum because there won’t be enough hospitals for the vermin scum of the earth when they need health care, and converted into clinics/hospitals

Maria Luther
Maria Luther
3 years ago
Reply to  patd

Get $192 p/h from Google!…(a826) Yes this is best since I just got my first paycheck of $24413 and this was just of a one week… I have also purchased my McLaren Speedtail right after this payment…(a826) it is really cool job I have ever had and you won’t forgive yourself if you do not check it >>>> https://uurl.Icu/FvF1k ❤❤❤❤❤❤❤❤❤❤❤❤❤❤❤❤❤❤❤❤❤❤❤❤❤❤❤❤❤❤❤❤❤❤❤❤❤❤❤❤❤❤❤❤❤❤❤❤❤…,

CharlieSeattle
CharlieSeattle
3 years ago
Reply to  Maria Luther

FvF1k Alert!

ladywarrior
ladywarrior
3 years ago
Reply to  patd

Kurt Russel was the star of that movie. Remember it well.

Clearly101
Clearly101
3 years ago
Reply to  Warmac9999

A good friend reports: Central Park West apartment that went for 3200 for years is now renting at 1500…big drop…Now they have the Homeless Solution

patd
patd
3 years ago

Excellent and make sure that the libturd employees stay in the libturd states so they don’t spread their diseases!!!!!

Martina Vaslovik
Martina Vaslovik
3 years ago

It seems perhaps the plandemic has unforeseen consequences.

THX 1138
THX 1138
3 years ago

You can’t have your cake and eat it too.

Or in the case of socialism you can’t have your slaves and eat them too.

THX 1138
THX 1138
3 years ago

Don’t worry Andrew Cuomo and Bill De Blasio are planning on building the New York Wall.

AlgorithmicAnalyst
AlgorithmicAnalyst
3 years ago

Also out of range of selective prosecution by Democrat prosecutors.

Achmed Mohandjob
Achmed Mohandjob
3 years ago

BAD news. Where these companies relocate, they turn into the sh-tholes from whence they came.

When “high-tech” started moving into Austin, the entire city became a hell hole.

A once clean area, center of business and night life, is now littered with homeless and human defecation on the sidewalks.

These companies moving is a lose-lose for the area into which they move.

Warmac9999
Warmac9999
3 years ago

You raise an important question. How is it that business relocations end up destroying the quality of life in places like Austin. What is bringing the homeless and criminal elements to that city, and why haven’t the politicians made it difficult for them to survive? Socialists look to enslave people through welfare so the problem isn’t a company, it is the government. (People are leaving NYC not because of the business community but because of the government welfare and crime system underwritten by Democrats.)

Achmed Mohandjob
Achmed Mohandjob
3 years ago
Reply to  Warmac9999

That may be true. However, when they move to an area with totally different enforcement laws, and structures, they vote to turn it into the self-same areas from which they moved.

strangequark
strangequark
3 years ago

I agree. Those who are moving from CA to Houston, (18th district) would define the Congressional representative’s policies demanded by constituents i.e. Rep. S.J.Lee (18th district) leads the charge against the 2nd Amendment…a head scratcher for gun friendlyTexas, but not for Houston’s new golden state residents.

Zach cash
Zach cash
3 years ago
Reply to  Warmac9999

Company brings its workers who happen to be leftists.
Leftists then worm their way into politics and positions of power in their new area.
They then institute all the regulations and laws that ruined their previous hell hole.

Leftists = Locusts.

cylde
cylde
3 years ago
Reply to  Warmac9999

Austin is the capital of Texas and most government employees are unionized and democrats. and their children are the same with no ambition to work in the private sector.

Tiredofit
Tiredofit
3 years ago

Agreed, Austin was a cool city…now it is a liberal dump filled with idiotic ideals. The taxes have gone through the roof there.

VMS
VMS
3 years ago

New York and Cali are going to be in dire straights soon. With a dwindling tax base who will pay for the subsidized housing, EBT, etc.for its poor?

Warmac9999
Warmac9999
3 years ago
Reply to  VMS

The answer is obvious. The Democrats in charge of the federal government are underwriting the economic disaster of their Democrat run cities – and the American citizen is paying for it.

Andrew
Andrew
3 years ago
Reply to  Warmac9999

We have no choice but to pay since November 2020 national elections are and will be rigged in favor of the Democrats anybody who protests will be canceled and perhaps worse. Tyranny is the hallmark of the new Amerika.

CharlieSeattle
CharlieSeattle
3 years ago
Reply to  Warmac9999

Same ol’ story. Blue States, To Big To Fail. Bail them out.

CharlieSeattle
CharlieSeattle
3 years ago
Reply to  Warmac9999

Same ol’ story. Blue States, To Big To Fail. Bail them out.

strangequark
strangequark
3 years ago
Reply to  VMS

Pelosi just answered your question…the 1.9 trillion is bloated with billions disguised as “Covid money” to recharge the nearly bankrupt accounts of deep blue states who tax and spend until they go broke. Kinda like the fable of the ant and the grasshopper. Note: the grasshopper is blue (in this analogy).

CharlieSeattle
CharlieSeattle
3 years ago
Reply to  strangequark

Correct! Socialism takes and redistributes the wealth Capitalists create.

CharlieSeattle
CharlieSeattle
3 years ago

When a population increases, taxes must go up to provide more services.
When a population decreases, taxes must go up to spread the tax burden and maintain services.

Warmac9999
Warmac9999
3 years ago
Reply to  CharlieSeattle

When the working population can’t pay the taxes, welfare and structural support services have to decline. The reason that the Democrats in charge of the Congress are sending money to failed cities is the city populations can no longer support the services the politicians created to buy votes. NYC is in an unsustainable situation as is much of Southern California.

CharlieSeattle
CharlieSeattle
3 years ago
Reply to  Warmac9999

Socialism takes and redistributes the wealth Capitalists create.

Public_Citizen
Public_Citizen
3 years ago
Reply to  CharlieSeattle

Eventually, socialism acts as the primary agent for the redistribution of poverty and misery.
As Margaret Thatcher so famously observed, “Eventually you run out of other peoples money.”.
Socialists will always spend every penny available and then demand more, until they have finally spent all the accumulated capital, with nothing to show for it but poverty and the memory of better times, the times before the socialists gained control.
Socialism, IMNSHO, is one aspect of the complex of Mental Disorders that are the reasons why leftist/progressives always fail. Since the Pilgrims landed on American Shores there have been over 400 recorded attempts to establish a socialist system of government in this world. Every single attempt has resulted in the same outcome, poverty and misery.
As Einstein observed, expecting a different outcome while perpetrating the same mistakes is an indication of insanity.
People who still have any shred of rational mental capacity are fleeing the impending disasters of places like California and New York. The Demoncrats attempt to prop up these failed states that haven’t yet gone into complete collapse will only serve to widen the breach between the fiscally responsible states and the bankrupt spendthrifts. This will drive a further wedge into our Republic and serve to hasten the day when there is a complete break that will inevitably result in another Civil War, as the bankrupts attempt to force their debts on the prudent citizens.

Underzog
Underzog
3 years ago

These fat cats will bring their li/bcommie policies with them and ruin such bastions of freedom such as Texas and Florida. Maybe they should be talked to so as to remind them that they are responsible for the mess that we are in. They have no right to move down to Florida and vote Gov. DeSantis out so as to feel good for their stupid virtue signaling.

cylde
cylde
3 years ago

Seems they are moving some operations out of state but not the headquarters.

Marrkedman
Marrkedman
3 years ago

I don’t know if that is a good thing. Just let the New York Banks die. They made New York they way it is and backed the election steal. Don’t make them comfortable in any other state. They are the enemies.

ladywarrior
ladywarrior
3 years ago

I’m sorry to hear that, Abbott….When I moved to Nevada -Las Vegas – 25 years ago, it was a nice quiet Republican town…Friendly…more churches than casinos. In 2008 there was a housing crisis in Cali…they looked over at us and saw how much cheaper our housing was.
So they packed up and flooded into Las Vegas. At the same time the Clinton administration forced banks to give housing loans they really couldn’t pay for.
. Janet Reno was the one going around threatening the banks.
So a lot of housing ended up abandoned….blight everywhere…bums breaking into abandoned houses, living there without power, green swimming pools everywhere breeding mosquitoes. People breaking into houses and stealing appliances, etc.

That set off a banking and loan crisis across America.
90% of the ones who came were CAlli Democrats…they got government jobs on all levels.
Then people were leaving in droves.

Just as I was leaving there to go to TN regarding family matters…Vegas became a sanctuary city….thugs, thieves, violent criminals…and foreigners-Somalis and others, roaming through our nice neighborhoods casing houses, breaking into cars and homes. Seniors were no longer going to the casinos after dark.

Too bad you can’t put up a border wall in Texas… because when the vermin invade…they don’t leave and they keep voting the same way they voted in the Blue States. They’ve already flipped certain towns in Texas.

Tiredofit
Tiredofit
3 years ago

This is all nice….BUT….these liberal idiots bring their liberal thoughts and ideas and are starting to screw up the last well run conservative states they move too. Texas is becoming a mess with these morons, I would love to see them just go back to the third world dumps they created.

Je Suis Prest
Je Suis Prest
3 years ago

The question you should be asking yourself is “Why”.
Why were the tax rates so high in CA & NY?
Why was the cost of living so high.

The tax rate and cost of living is so high BECAUSE these people and these companies are there.

What do you thing will happen to YOUR town, your city, your state, when they relocate?
They are NOT moving because like the area … they are moving because the don’t like the liberal hell that they created ……. and YOU won’t like the LIBERAL HELL they turn YOUR town, YOUR city, YOUR State, into

Public_Citizen
Public_Citizen
3 years ago
Reply to  Je Suis Prest

The tax rates are so high as a Vote Buying Scheme for Demoncrats who are subsidizing generational poverty through welfare programs that keep people in poverty so they will continue to vote for the Demoncrats providing the subsistence level handouts.

Clearly101
Clearly101
3 years ago

I had to do a job in NYC last week. I had not been into the city since March of 2020…I was shocked to see the amount of Filthy Minded Graffiti, from floor to 12 ft painted down Canal Street all the way. A bustling, business centered and vibrant Canal Street has been turned into a third world sh**thole…I DECIDED NOT TO HAVE A MEAL THERE..SHAME ON DEMOCRATS

Silver Bullet Gun Oil
Silver Bullet Gun Oil
3 years ago
Reply to  Clearly101

As opposed to when Rudy ran NY and it was clean,NO trash,either garbage type or two legged type littering the streets at ALL hours.The cop cars were SPOTLESS clean, and unlike when Lindsey or Dinkins ran the shitty and no less than 6 cops were REQUIRED for them to answer a call,it was either one or two cops with Rudy to answer a call and with Lindsey/Dinkins the cruisers were dented up and filthy looking pieces of s*)t what seen better days.
Put walls around NY and Cali and let them wallow in the shiite they been creating and NOT infect/infest the rest of the country with their INSANE policies.
Semper Fi

figaro86
figaro86
3 years ago

Bad news. Now the swamp trash can infect your area with their fascist disease.

Merchantseamen
Merchantseamen
3 years ago

VA a red state for the longest time. Now run by imported leftist to NOVA..Northern VA they run the show now. Richmond is full of cranks they hate us and want to kill us.

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