Goldman Sachs Group Inc is considering a new base in Florida for better asset management, said some media reports. The decision of the financial titan will be a major blow to New York City which has been an important destination for the financial industry. The American multinational investment bank is relocating an asset management arm that generates revenue of around USD 8 billion. People privy with the development said that the possible locations include Fort Lauderdale or Palm Beach County. Officials are in talks to understand tax advantages and other benefits of the move in long run. If the plan materializes, the bank will be a new entrant in the list of financial services firms that have moved to cheaper states.
Several other investment companies have off late moved to down South, resulting in white-collar jobs loss in New York. Most of the office spaces in Manhattan are reportedly empty. This also coincides with the coronavirus pandemic which has spurred a trend of remote work. However, it is yet not clear how many people of the multinational bank will be located at the new destination. But it’s sure that the staff at the new setup will be a mix of investment professionals and back-office staff. Commenting on the development, a Goldman Sachs spokesperson said that there are no specific plans to announce at the moment.
There are certain people who are of the view that the plan may not materialize and the multinational bank may decide to move to a different city like Dallas. This has become a trend as recently billionaire Paul Singer decided to shit headquarters of Elliott Management from Manhattan to Florida. Manhattan-based private equity firm Blackstone too is planning to open a new office in South Florida and will reportedly hire over 200 employees. According to a report, most of the hired workforce will be back-office technology staffers. Similarly, Charles Schwab – who has been for long based in San Francisco – has decided to shit its base to the Dallas area.