New York loses $1 trillion in Wall Street business as firms flee the city: report

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Of 158 NY-based companies managing $993 billion in assets, 56 have decamped to Florida, including hedge fund tycoon Paul Singer’s Elliott Management and closely-watched stock picker Cathie Wo…

–moved her firm ARK Investment Management — and its $24.7 billion worth of assets — to St. Petersburg, Fla.In all, 56 of the New York firms have decamped to Florida, while most of those remaining also headed to warmer states such as Texas and the Carolinas, according to the report. New York isn’t the only major loser, with California also having lost $1 trillion in financial assets under management to Florida, Texas and other lower-cost states.

According to New York State Comptroller Thomas DiNapoli’s latest figures on the securities industry, Wall Street bonuses could slump by as much as 45%. The dip doesn’t spell good news for the state, which relies on personal income taxes.Tax revenue from the industry this year is headed for a “significant decline,” the report warned. it also noted that New York’s share of financial-industry jobs was 17.

The nearly $500 million, 815,000-square-foot development was made possible with the $18 million in tax breaks the city of Dallas granted the Wall Street bank last July in exchange for bringing as many as 5,000 jobs into the city. Mammoth money manager AllianceBernstein moved its headquarters from New York to Nashville in May 2022 — taking a staggering $685 billion in managed assets with it. In the process, the mega-firm also relocated 1,000 jobs in a shift that Bloomberg reported at the time would save the global asset management firm $80 million a year.

 

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