Goldman Sachs, the multi-billion dollar American investment banking company, is reportedly considering a plan to move its asset management division out of New York City, and instead operate the division somewhere in the South in order to save money.
Bloomberg News, citing “people with knowledge of the matter,” reports that executives from the company “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.” Dallas, Texas, is reportedly another area under consideration.
The Goldman Sachs asset management division is responsible for $8 billion in annual revenue, and relocating the division would serve as “another potential blow to New York’s stature as the de facto home of the U.S. financial industry,” reports Bloomberg.
“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.
Amidst the coronavirus pandemic and summer unrest, uncertainty has arisen as to whether or not New York City will manage to retain its status as the epitome of American big-city life and as a hub for business and entertainment.
More from Fox Business:
Landlords enticed new tenants by offering the largest share of concessions on record. Slightly more than 54% of new lease signings received concessions, like a month of free rent or payment of brokers’ fees.
Rental prices were down 7.7% from a year ago, including concessions, with the biggest declines occurring in the lower-priced segment of the market.
James Altucher, a hedge fund manager and comedy club owner, wrote a viral blog post back in August explaining why he believed the city wouldn’t come back in the same way as it did in the aftermath of the Great Recession.
In 2008, average bandwidth speeds were 3 megabits per second. That’s not enough for a Zoom meeting with reliable video quality. Now, it’s over 20 megabits per second. That’s more than enough for high quality video.
There’s a before and after. BEFORE: no remote work. AFTER: everyone can remote work.
The difference: bandwidth got faster. And that’s basically it. People have left New York City and have moved completely into virtual worlds. 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.
Comedian Jerry Seinfeld didn’t take lightly to the idea that New York City was done for, and wrote an op-ed for The New York Times in response.
Oh, shut up. Imagine being in a real war with this guy by your side.
Listening to him go, “I used to play chess all day. I could meet people. I could start any type of business.” Wipe your tears, wipe your butt and pull it together.
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?!
And I have been onstage at your comedy club Stand Up N.Y. quite a few times. It could use a little sprucing up, if you don’t mind my saying. I wouldn’t worry about it. You can do it from Miami.