Wall Street Near-shoring

[longyi]

New York’s biggest investment houses are shifting jobs out of the area and expanding in cheaper locales in the United States, threatening the vast middle tier of positions that form the backbone of employment on Wall Street. The shift comes even as banks consider deeper staff cuts here, which could undermine the state and city tax base long term.
“Some functions need to stay in the United States, but they don’t need to be in New York City or near the client,” Mr. Malick a partner of Boston Consulting Group said. And with most investment giants facing anemic revenue and more stringent regulation that cuts into trading revenues, relocation is more tempting than it was before the financial crisis.
Low-level jobs have already migrated to call centers and back offices overseas, while top-end traders and bankers are secure in the New York area, experts say. Instead, services like accounting, trading and legal support, and human resources and compliance are being shifted to places like Salt Lake City, North Carolina and Jacksonville, Fla.
Garry Douyon enjoyed his job helping process trades and working with clients and traders at RBS in Stamford, Conn., earning nearly $100,000 a year, but when the firm decided last fall to move his team to Salt Lake City with a salary of $60,000, he said he really didn’t have much of a choice.
The potential shift has profound implications for New York’s tax base and economy because of Wall Street’s outsize financial profile. Last year, the industry contributed 14 percent of New York State’s tax revenue.
New York’s status as a financial capital is not likely to fade, and the state’s share of securities jobs in the United States has held steady at about 24 percent in recent years.
“Even as the securities industry goes through a difficult time, New York remains the financial capital of the world and I don’t see that changing anytime soon,” said Thomas P. DiNapoli, the New York State comptroller.

http://www.nytimes.com/2012/07/02/b...-as-firms-cut-costs.html?_r=1&ref=todayspaper


With the banking sector is in the process of another major staff reductions and now this.....New York City is in a bit of trouble.

 

[Sashan]

New York’s biggest investment houses are shifting jobs out of the area and expanding in cheaper locales in the United States, threatening the vast middle tier of positions that form the backbone of employment on Wall Street. The shift comes even as banks consider deeper staff cuts here, which could undermine the state and city tax base long term.
“Some functions need to stay in the United States, but they don’t need to be in New York City or near the client,” Mr. Malick a partner of Boston Consulting Group said. And with most investment giants facing anemic revenue and more stringent regulation that cuts into trading revenues, relocation is more tempting than it was before the financial crisis.
Low-level jobs have already migrated to call centers and back offices overseas, while top-end traders and bankers are secure in the New York area, experts say. Instead, services like accounting, trading and legal support, and human resources and compliance are being shifted to places like Salt Lake City, North Carolina and Jacksonville, Fla.
Garry Douyon enjoyed his job helping process trades and working with clients and traders at RBS in Stamford, Conn., earning nearly $100,000 a year, but when the firm decided last fall to move his team to Salt Lake City with a salary of $60,000, he said he really didn’t have much of a choice.
The potential shift has profound implications for New York’s tax base and economy because of Wall Street’s outsize financial profile. Last year, the industry contributed 14 percent of New York State’s tax revenue.
New York’s status as a financial capital is not likely to fade, and the state’s share of securities jobs in the United States has held steady at about 24 percent in recent years.
“Even as the securities industry goes through a difficult time, New York remains the financial capital of the world and I don’t see that changing anytime soon,” said Thomas P. DiNapoli, the New York State comptroller.

http://www.nytimes.com/2012/07/02/b...-as-firms-cut-costs.html?_r=1&ref=todayspaper


With the banking sector is in the process of another major staff reductions and now this.....New York City is in a bit of trouble.

Trust me - only the supporting cast(like IT) will be moved outside of NY. Traders prefer to be in NY. If the banks try to move them outside of NY, then banks will lose out on critical resource.

 

[longyi]

Wall St is already lean and mean, any further reductions will show on the city's bottom line. Banks are not moving out of NYC though, they're just reducing staffs and cutting all weekend hours.

 

[Sashan]

Wall St is already lean and mean, any further reductions will show on the city's bottom line. Banks are not moving out of NYC though, they're just reducing staffs and cutting all weekend hours.

I work in one of those banks and I can vouch for that. They have stopped various backend office related projects to reduce cost as well and they are consolidating the offices to save on real estate costs.

 

[kawaraj]

big apple's going to end like Detroit, another deserted old place in another fashion.

 

[fallstuff]

Meanwhile, the CEOs have received bonuses for making these crucial changes/cuts.