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Goldman Sachs CEO Says Declining New York City May Lose Status As Global Financial Hub
Hollie Adams/Bloomberg via Getty Images

Goldman Sachs chief executive David Solomon warned at a Financial Times conference that New York City may cease to be a global financial hub if it does not end the policies causing its decline.

During remarks at the conference, as summarized by the New York Post, Solomon said that “New York has to be aware that there are good choices, and it’s got to keep itself attractive” — especially with relation to “taxes” and “cost of living.”

Solomon added that no city is guaranteed “a permanent place in the world,” referring to Detroit losing its status as the capital of the automobile industry.

Indeed, the tax burden in New York City is among the largest in the nation. The New York Post noted that the Big Apple imposes a 3.9% tax on top income-earners, in addition to New York state’s 10.9% rate and the federal government’s 37% rate.

Earlier this year, many investment bankers — including Goldman Sachs employees — flooded recruiters’ offices with requests for transfers to Florida.

Fox Business reported:

Job headhunters say banks such as JPMorgan and Goldman Sachs have what is being described as a waiting list of executives looking to move to the Sunshine State primarily because of its lower cost of living, but also because of other quality of life issues including a lower crime rate. Manhattan, where both firms are located, is dealing with a spike in crime and homelessness. Under Mayor Bill de Blasio crime statistics have risen in most categories with the New York Police Department reporting a 39.6% rise in grand larceny thefts last week for the four weeks ending June 6. 

“The JP Morgan recruiter from Florida just told me he’s getting so much demand from employees in the northeast to move to Florida they’re not even considering external candidates for those jobs,” one financial services executive told Fox Business. “I hear the same thing is happening at Goldman and elsewhere.”

More recently, New York City opened an “Overdose Prevention Center” to provide drug addicts with a safe and legal injection site.

“New York City has led the nation’s battle against COVID-19, and the fight to keep our community safe doesn’t stop there. After exhaustive study, we know the right path forward to protect the most vulnerable people in our city. And we will not hesitate to take it,” Mayor Bill de Blasio said in a statement. “Overdose Prevention Centers are a safe and effective way to address the opioid crisis. I’m proud to show cities in this country that after decades of failure, a smarter approach is possible.”

“Overdose Prevention Centers can turn the tide in the fight against the opioid crisis, and New York City is ready to lead the way,” added Deputy Mayor for Health and Human Services Melanie Hartzog. “We have lost too much to rely on the same playbook. It’s time to take bold action to help our most vulnerable neighbors and the communities they call home.”

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