New York: Home office and moving: It’s getting lonely on Wall Street

The New York retail floor is emptying: employees are in the home office due to Corona, companies are moving to Florida. Is the metropolis threatened with losing its stock exchange?

You don’t have to be in New York to work on Wall Street. That was clearly shown in the pandemic. Nothing new for Alejandro Gonzalez: For three years he has been trading for clients of the major bank UBS from Miami on Wall Street. The New York trading floor? “I have no idea why it still exists,” says the 32-year-old, who knows both cities – but would still sometimes prefer to be in New York.

Gonzalez wouldn’t see many colleagues there at the moment: Less than 20 percent of the employees are back in the office. Almost 15 percent of office space in Midtown is vacant, the highest figure since 2009. It has also grown quiet in the financial district in southern Manhattan. Behind the column facade of the New York Stock Exchange, numbers continue to flash on the screens. But they are more for the moderators of the business news than for the remaining brokers, say many. Those who return after the pandemic will find a smaller Wall Street.

The “Einstein of Wall Street” believes: Machines cannot replace professional dealers and personal contacts

A little over 120 people are currently on the floor, before the pandemic it was around 500, estimates Peter Tuchman, the best-known retailer, called “Einstein of Wall Street” because of his hairstyle. He’s been here since 1985. For him it remains an exciting place, one of the community, he often says in interviews. He believes: machines cannot replace professional dealers and personal contacts. But he also knows: Gone are the days when thousands of securities dealers on the most important trading floor in the world shouted share prices through the hall and notes paved the floor. It doesn’t need that anymore. But who still needs New York?

Exchange trading has long been carried out electronically via large server parks in the neighboring state of New Jersey. Since last year, traders and bankers have been swapping their desks in glazed skyscrapers for the kitchen table, the house on Long Island – or a state with lower taxes like Florida, Texas or Colorado. Expensive office space becomes superfluous. In addition, the crisis has changed New York. The crime has increased about. The financial industry is also facing a cooler wind.

Does the center of the global financial industry need to find a new home?

New York Mayor Bill de Blasio made it clear in the summer: “We don’t make decisions for the rich few.” Without federal aid, a tax for the rich would have to be established: “As we can see on the stock market: While everyone else suffers, the rich will always be Richer. ”Politicians in Albany, the capital of the state of New York, are actually considering imposing a tax on stock trading to fill their coffers, which are tight due to the corona crisis. This could bring the state up to $ 29 billion, according to the Democrats.

Stacey Cunningham, head of the New York Stock Exchange, is outraged. Should Albany pull this off, “the center of the global financial industry may have to find a new home,” she threatened in the Wall Street Journal. The pandemic has shown: “We can close the trading floor at any time and maintain services without missing out on anything.”

The new reality of being able to work from anywhere is dangerous for New York. The richest five percent of the population account for 62 percent of all income tax payments, writes the Partnership for New York City organization, representative of the business elite, on its website. The organization’s president, Kathryn Wylde, told Fox Business: “There is no question that we will see a significant loss of Wall Street talent beyond the pandemic.” Miami’s mayor wants to use the momentum: “Would be great if you’d bring your talents to Miami, Stacey Cunningham. Let’s talk, ”Francis Suarez tweeted in the direction of the New York Stock Exchange.

Will Florida create a South Wall Street because of Corona?

In fact are already before Corona many companies and wealthy retirees moved to Florida. But now the “Wall Street of the South” is a real trend destination. The holding company Icahn Enterprises and the hedge fund Elliott Management moved their headquarters there. Investor Blackstone and financial services company Citadel opened offices. JP Morgan Chase, the largest US bank, and Goldman Sachs consider following suit. The high-frequency retailer Virtu Financial also lets ten percent of its employees, 50 volunteers, move to Florida. Many answered, concerned about the quality of life in New York, said CEO Douglas Cifu of the Bloomberg news agency. And: If you go to Miami, you keep your salary, but earn eleven percent more because there is no income tax there. Cifu thinks that most financial employees will be back in the office after 2022 – but then spread out across the country, less concentrated in New York.

In the “Sunshine State” Florida you can wear shorts and play golf all year round, says dealer Alejandro Gonzalez. The Colombian is responsible for UBS’s Latin American clients and is a short flight from them in Miami. Most speak Spanish there, some hardly speak English. But that’s not something for every newcomer, he says.

It is especially attractive to the financial firms Miamis cooperative mayor. The 43 year old Republican Suarez attracts with low taxes, high quality of life and low crime. “How can I help?” Is his motto Twitter and talking to business people. Alejandro Gonzalez placeholder image but doesn’t think that New York is ever replaced. If he could, he would be in Manhattan work. There you learn from the best. Miami have the better quality of life, New York the better people, the elite college graduates. The companies would also know that.

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