In another blow the prestige of New York City’s claim to be the U.S. financial hub, one of the oldest investment banks in America is considering opening up a division in Florida to manage its asset management group, according to Bloomberg News:
Executives 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, according to people with knowledge of the matter. The bank’s success in operating remotely during the pandemic has persuaded members of the leadership team that they can move more roles out of the New York area to save money.
While many may not see this as a big deal, the de-centralization of the financial industry away from traditional hubs of operation like New York City, Chicago, and San Francisco could save the industry hundreds of millions if not billions of dollars in punitive taxation and talent bleed due to the high cost of living.
Florida and Texas, thanks to the new remote workplace accommodation, may well lead the future if they can maintain a somewhat libertarian approach to taxation and regulatory oversight compared to the traditional locations of the old economic powers inside the United States.
The evolution of a new financial version of the “Rust Belt” may well now become the Bankruptcy Belt as citizens flee their run down over taxed, over regulated, and overbearing overlords who have failed to evolve as technology changed in the past twenty years.