Babylon's Bankers

GOLDMAN SACHS JOINS EXODUS FROM NEW YORK

Goldman Sachs seems to be the most recent (and famous) New York investing house to join the exodus from that state for warmer climes, in this case, Florida according to this article spotted and shared by B:

Goldman Sachs Latest Wall Street Giant To Move Traders To Florida After NY Tax Hikes

According to the article, the reason for the beginning of this latest exodus are the high taxes in New York state and New York City:

Goldman Sachs employees finally returned to the office this week (for at least part of the work week). But at least some Goldman employees who miss working from the beach, the bank might soon be moving some of its front-office workers from NYC down to sunny Florida, becoming the latest major Wall Street firm to beef up its operations in the Sunshine State.

Goldman will join Carl Icahn, Dan Loeb's Third Point, the private equity giant Apollo and a host of other firms in moving more employees to Florida, a state that, among other perks, has no income tax, according to a report published Monday by Insider.  But talk of the bank moving some of its personnel has been circulating since at least late last year.

Per Insider, Goldman "is in the early stages of moving traders and salespeople to Florida," and the leaders of its global markets group have recruited about 100 or so people to move down south, according to sources "with knowledge of the plans."

As I argued in my blog about Texas Governor Abbott's attempt to woo the NASDAQ data center from New York to Dallas, where data centers and traders go, exchanges are not far behind.

But there's another reason mentioned in the article, and I find it very intriguing and important, not the least because "I'm an analogue kind of guy":

The move makes sense considering that one of Goldman's top traders already commutes to New York from Boca Raton. As it happened, having at least one of its top traders in Fla. during the pandemic turned out to be a godsend for the bank, since they were able to meet with clients face-to-face more than six months before bankers in NYC were able to.

Goldman's sales-and-trading operation is led by Ashok Varadhan and Marc Nachmann. While Varadhan lives in New York, Nachmann commutes to New York from a private development in Boca Raton, Florida, according to real-estate records.

Florida has been Nachmann's home for more than 15 years, according to two people with knowledge of his arrangement. During the pandemic, his Florida base meant Nachmann met with clients in person roughly six to eight months before New York reopened, one of the people said.

Insider reports that Goldman's plans for relocating some of its top people to Florida started taking shape even before COVID. It started when one of the top executives in the bank's asset-management arm stated exploring a potential move, just as more buy side firms (and more of the bank's clients) were heading to Florida. When CEO David Solomon caught wind of GSAM's plan, he decided to expand the project and explore moving even more personnel to the famously low-tax state.

In other words, in the high investment world of Goldman Sachs, nothing - absolutely nothing, not profit to loss ratios, not risk assessments, not prospectuses - can replace the man-to-man interaction of being able to look someone else in the eye and "get the measure of the man."  And if Florida let's you do it, and New York and Nuttyfornia do not (unless of course you're Nancy Piglosi and need your hair done), then off you go.

All that's well and good.

But I suggest there may be deeper reasons for the exodus, and these reasons should give those states doing the wooing some pause. I suggest it's necessary to view these moves in the context of the growing movements of states, particular on the borders and in the heartland of the USA, to pass various nullification laws, to recognize bullion as legal tender, to start their own bullion depositories, and so on.  To give these measures teeth, those states will have to address - at the state level if need be - the laws and financial practices that led to the financial mess than began to grow in the 1990s. If one were Mr. Globaloney, and watching this slow crackup of the USA and the ineffectual federal government, one would want to fasten the claws of financial control around the larger of those states, like Texas, and Florida. It's an old game: when one headquarters becomes no longer feasible, simply move it, and continue to play the same game, from Venice to Amsterdam to London to New York ... to Miami and Dallas...

So my advice to those states: it might be necessary to consider state versions of Glass-Steagall, or compacts among themselves for regional versions thereof... and to consider other means of ensuring the growth of productive capitalism, and not the finance-crony-crapitalism that has been the practice for far too long. One might even want to discuss and debate the idea that, in return for being allowed to conduct business in a particular state without income tax, that a certain percentage of investments go to the creation of manufacturing businesses within that state, and majority equity stakes held by Americans.

Just a thought...

But in the meantime, regardless of what happens, Goldman Sachs' move presages more to come.

See you on the flip side...

17 thoughts on “GOLDMAN SACHS JOINS EXODUS FROM NEW YORK”

  1. In one’s opinion, learning how to be financially mobile seems the trend no matter the size of the outfit. Considering what was lost and had to be rebuilt in New York City, not too long ago, because it became a target, dispersion seems the safer trial for investments and sales. Higher taxes are nearly always a loser. There’s a lot that goes along in resources and people, no revelation there, but that stuff takes time. It’s almost as if there’s a greater plan of a syndicate in motion.

    Then there are the contrarians, the bargain seekers in abandoned prime real estate regions, and the change of demographics, especially, on those bedrock areas currently built onto. The skyline suggests several things to consider for future developers. That all takes time. Low tax and no taxation certainly are movers for big moves and short stays. An inside view of those long-term plans would probably make good movies and best sellers if fictionalized. A few additional ideas wouldn’t hurt either should the unexpected arise (again). Makes one wonder if there’s bad blood brewing where it was once thought unthinkable. There’s also the matter of open-air verses confined air flows.

  2. marcos toledo

    The Confederacy is finally come out of the shadows and revival itself the post civil war defeat was defeat in name only. The policy of the USA in the Americas and around the World are the policies of a victorious CSA including its hatred of Russia and sycophancy towards London.

  3. Robert Barricklow

    The questions isn’t why leave New York?
    The real question is, why on Earth are you staying in New York?
    Are ‘Abnormal NEW’ York and Nuttyfornia the “Blue” bellwether states?
    [Certainly hope not, as I’m in a blue state.]
    Even Goldman Sachs, the abnormal new academy,
    for unelected and unaccountable global leadership,
    is tucking its tail between its moving out legs.

    Oops!
    Running late…
    Whit Rabbit

    1. Robert Barricklow

      The reasons they give for the move are good;
      but what are the ones they will not breath a word about?

      As far as money goes, the first official nail in the U.S.A. financial coffin
      was the 1913 private “Federal” Reserve Act. Then Bill Clinton came repealing Glass-Steagall Banking Act of 1933, saying you could trust the unaccountable, unelected international banking cartel w/a thousand year plus record of destroying country after country after country.
      Or, from a weak state, to a healthy state.
      From a weakened host, to a healthy host.

      What’s different this time?
      Covid1984 tie-in w/global economic/political ambitions and implications; including a digitized-coupon socialized-surveillance-credit system.

      Look at Goldman Sachs for what it is, a weaponized financial tentacle of the Vampire Squid, sucking the living life out of Earth.
      One that desires to fortify its connections
      between North America & South America.

      The Vampire Squid has been inking/marking
      its economic zones across the globe.
      China & Russia appear to have kept it somewhat at bay.

      Certainly don’t want to see Florida turn USSA blue;
      nor, do I want to see Texas start signing the blues.

    2. But the real question are, why leave now and not 20 years ago?
      Ah, the NWO plan of course, just as 911 actually was intended to be 10 years earlier!

  4. Once again, I am reminded of the banking houses in the northeast who opened banking houses and franchises in the Deep South just prior to the “War Between the States”. This war was engineered just like every other in modern history–banking. The best way to destroy the Jacksonian banking system to a new Alexandrian model was war–forcing both sides to adopt one then fuse them together. Besides, one had to keep the slave profits going and break the backs of any blockades. Though they had no direct control over the nation they did have a firm grip on the economic system–with them at the wheel. After alliances with the corporations of the day in rail, weapons, agriculture and raw materials it was just a matter of making…agreements. Same song but an altered arrangement. Think Iron Sky’s use of a popular Nazi music piece played with a very different tempo and instrumentation. Or, Jimi Hendrix playing the Star Spangled Banner. Others in the thread are discussing elements of the theme, so maybe the theme should be exposed.

  5. Just an idle thought: I think we’ve been experiencing the way warfare will be conducted in the future, which is germ warfare. Plant and equipment remains intact, those deemed as valuable people will get actual effective vaccines while the excess don’t. Also, the best safest places to live should be those with moderate climates that minimize the need for central heating/cooling which helps minimize exposures to airborne disease (or chemicals). Maybe Florida isn’t the best location for these pseudo-masters of the universe.

    1. Though I agree with this in part I do suspect all of the Nazi elements need to be closely tied between the two continents. (North and South America) This means, TX is a strategic location–as well as FL. One is almost all coast-line. The other is almost all land-locked. Controlling both lanes is critical. CA, OR and WA they pretty much already own. Now the Nazi elements can operate globally and be more interconnected. This is just a proposition–but one worth some consideration.

  6. New Yorkers have been coming to South Florida for a long time, but all these big banks and hedge funds heading to Florida is new. There are definitely financial and legal incentives for rich individuals to be domiciled in Florida, so I’m sure that’s part of it, along with the fact that there are already plenty of former New Yorkers living in the part of the state where the finance guys are going.

    I think another part is a plan to empty out the commercial districts of New York City. I predict the same financial houses moving to Florida will eventually be investing in the hollowed-out commercial real estate in Manhattan and planning to redevelop it as high-density, low-income smart-city housing for the masses of newly poor who will one day be on a universal basic income.

    I do wonder what the hidden motivations of these moves are, as I’m sure there are some. South Florida is the ideal place for doing business with Latin America; I don’t know if that’s part of it. I don’t know why anybody would move data centers to any of the populated parts of Florida, given the risk of hurricanes and tropical storms… unless you can control the weather.

    One thing to understand about Florida is the southeast part (the Palm Beach, Boca Raton, and Miami areas) is heavily Democrat — and, despite the governor’s orders, mask wearing is the norm, and possibly still locally mandated in some places. So if you’re of a different mindset from that, and you’re considering moving somewhere in the U.S., put Florida on your list! I have nightmares about it turning into a blue state.

    1. Yep, they destroyed New York now it’s Florida’s turn. Only mindless and malevolent people are still Democrats nowadays and unfortunately that seems to be most of them. Even though they flee from what they have inflicted those who are too poor to flee, the mess they left behind in California and New York, they will still gleefully create an even bigger mess here before fleeing for the Bahamas or Cuba afterwards.

      1. Yesterday I was at the official launching ceremony for the New Spaceport in Houston, Texas. It was televised or recorded for later television propaganda purposes. I was invited at the last minute through a friend and the attendance was 50 people at best. It was a private ceremony that had several political people from the Democratic stronghold of the city of Houston as well as the Houston Airport Authority that is now the authority over the new Houston Spaceport. The Spaceport will officially open to the public in early 2022. I will say that the city council persons and business leadership that were there were all smiles and cheerful. Although when you actually talked to them in more private settings they slowly showed who they are to anyone that could see them in an awakened mindset. They slowly spoke of the need for more progressive programs like New York, Chicago, Los Angeles, Denver & Seattle with automated systems that did away with all the actual people touching anything and the elimination of all the redundant people that have no need to be in the transportation or toll authority because the entire system needs to be a digital based and autonomous driving systems. She looked at people like they were garbage to be swept aside and disposed of to be replaced by autonomous robots. When I said something about the loss of thousands of Metro busing and infrastructure jobs, her response was that all those people would be repurposed and reeducated into the new way of things just like they had done in the cities on the west coast. She actually thinks what’s going on with the west coast is a good thing and that the entire Houston area needs to be more like those cities. She mentioned that Austin and Dallas are on the right track and that we need to keep watching those cities in Texas for more progressive measures to be added. When I looked into that woman’s eyes for a bit I could see the evil oozing out of them and it was like another person had been suppressed and then let out of it’s cage when she was talking about repurposing and reeducating people for the new way of things. Never think that we are not at war with these people in every part of our lives. They are malevolent in all they do and in my opinion possessed by demons that hate humanity in all its forms.

        1. I call it the Blue Locust Wave. The rich and middle class Democrats that have transplanted to Florida because of the mess they created back home are also infiltrating and pushing the leftist agenda here. The Red rural areas are being turned purple. And it is like they are possessed. They know what it did back home yet are determined to do the same to our areas before they die of old age.

        2. My family and I lived there briefly near the end of the 1990’s–when the trend started. This was definitely not the FL I remembered. Gov. Abbott I do understand based on past decisions. He is in the corporations’ hip pockets. One has to be to be governor there it seems. Gov. DeSantis I do not understand yet. I am watching him closely. If he is an anomaly, like Trump, they will find a way to “promote him” right out of their way.

        3. I appreciate your comment and perspective. As an aside, I recall one of the rare conversations I had with my mater many decades ago. In reply to her observation regarding ditch diggers losing jobs to steam shovels. I commented about the creation of jobs to manufacture and maintain steam shovels. I suppose it was in some ways a matter of quantity versus quality. In any event change is usually precipitated by discomfort. And more change, and so on. I must admit an admiration for the Amish approach to living, however.

  7. Waiting for the NY Fed to announce they are moving the gold. Or allegedly moving it, since the metal may well have already gone “poof”.

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