"UBS To Stay at Home in Connecticut" "UBS AG will maintain its flagship trading floor and other operations across Connecticut after the state agreed to provide the Swiss bank with a $20 million loan over a five-year period." "Since late spring, UBS had been rumored to be weighing a move from Stamford to New York City, in part, due to difficulties the firm has had in recruiting top-tier... [more]
"UBS To Stay at Home in Connecticut"
"UBS AG will maintain its flagship trading floor and other operations across Connecticut after the state agreed to provide the Swiss bank with a $20 million loan over a five-year period."
"Since late spring, UBS had been rumored to be weighing a move from Stamford to New York City, in part, due to difficulties the firm has had in recruiting top-tier professionals to work in the state."
"Earlier Tuesday, UBS said it would cut 3,500 jobs globally as part of a plan to reduce its annual costs by $2.5 billion. UBS’s investment bank will bear the brunt of those cost reductions and job cuts, at 55% and 45%, respectively."
http://blogs.wsj.com/developments/2011/08/23/ubs-to-stay-at-home-in-connecticut/?mod=WSJBlog[less]
Response by Socialist
over 14 years ago
Posts: 2261
Member since: Feb 2010
I guess Connecticut offered them more generous welfare, I mean tax incentives, than NY.
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Response by Riversider
over 14 years ago
Posts: 13572
Member since: Apr 2009
More than a few of the Connecticut guys who work at UBS, Jeffries & RBS live in Manhattan. So they'll work in Connecticut and spend the money in New York
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Response by AvUWS
over 14 years ago
Posts: 839
Member since: Mar 2008
River - you are missing the news in this. The 3,500 in layoffs will still be happening. Previously the thought was that some of those 3,500 would be in the NY/NJ/CT area AND they would be closing up all CT operations, hence moving some of the remaining CT people to NY and NJ.
If they are keeping employees in CT but still laying off, then that means more heads in NY and NJ lost, and maybe some moved from NY to CT to fill they space of those they cut in CT. (ya gots to make the promised hirings in order to get the Danegeld, though in this case it is to keep the Dane, er, Swiss.)
None of these cuts in headcount are bullish for NY, nor for Fairfield Cty.
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Response by Riversider
over 14 years ago
Posts: 13572
Member since: Apr 2009
AvUWS,
I have not followed the story that closely , but the areas I think that will be hit are probably now based in Connecticut.
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Response by columbiacounty
over 14 years ago
Posts: 12708
Member since: Jan 2009
so what else is new?
you know nothing but feel no compunction about insisting on outcomes.
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Response by Wbottom
over 14 years ago
Posts: 2142
Member since: May 2010
you really are dumb, redbaiter
av's post is quite thoughtful, and very clear--and you opine in response, clueless to what it said
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Response by stevejhx
over 14 years ago
Posts: 12656
Member since: Feb 2008
They're also firing everybody who works there.
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Response by jason10006
over 14 years ago
Posts: 5257
Member since: Jan 2009
Corporate welfare, what, us???! Let pay investment banks millions of dollars. That is the true spirit of entrepreneurship!
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Response by Riversider
over 14 years ago
Posts: 13572
Member since: Apr 2009
How is paying a bank to stay in a state any different than what happens with sport teams franchises?
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Response by huntersburg
over 14 years ago
Posts: 11329
Member since: Nov 2010
Did you see how the CT unions caved? CT better be cutting taxes on the investment banks, some revenue is better than no revenue.
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Response by somewhereelse
over 14 years ago
Posts: 7435
Member since: Oct 2009
"I have not followed the story that closely , but the areas I think that will be hit are probably now based in Connecticut."
Wishful thinking... but no, I think that is off. Read the article, they have to maintain minimum headcount in CT as part of the deal.
from previous articles:
"Nearly half of the job cuts will be in the investment banking division, UBS said in a statement. The remaining cuts will come from the wealth management and asset management businesses."
They certainly have ibankers and wealth management in NYC. Note trading is not mentioned, and the football field is in CT.
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Response by falcogold1
over 14 years ago
Posts: 4159
Member since: Sep 2008
There was a time when the nation's steel was produced in and around western PA.
Related industries fanned out like tentacles.
Some many people employed and so much money was generated that it became hard to believe that steel would not come from this place forever.
Where the great Allentown-Bethlehem Steel production facility once stood...now stands a casino.
I wonder how much longer this island retains it's banking and finance industry?
The reason NY has the talent is because the jobs are here. This is the reason the talent comes here. When the jobs move so does the talent. Can't get talent in CT? RU kidding me?
Maybe not kiddy talent but seasoned talent???
Hey, banker dad of two living in the 2 bedroom with the cranky wife, want to move your desk to Stamford, cut your commute to 20 min. buy a stupid big house with fair taxes and send your kids to a good public school?
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Response by jason10006
over 14 years ago
Posts: 5257
Member since: Jan 2009
"How is paying a bank to stay in a state any different than what happens with sport teams franchises?"
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I guess Connecticut offered them more generous welfare, I mean tax incentives, than NY.
More than a few of the Connecticut guys who work at UBS, Jeffries & RBS live in Manhattan. So they'll work in Connecticut and spend the money in New York
River - you are missing the news in this. The 3,500 in layoffs will still be happening. Previously the thought was that some of those 3,500 would be in the NY/NJ/CT area AND they would be closing up all CT operations, hence moving some of the remaining CT people to NY and NJ.
If they are keeping employees in CT but still laying off, then that means more heads in NY and NJ lost, and maybe some moved from NY to CT to fill they space of those they cut in CT. (ya gots to make the promised hirings in order to get the Danegeld, though in this case it is to keep the Dane, er, Swiss.)
None of these cuts in headcount are bullish for NY, nor for Fairfield Cty.
AvUWS,
I have not followed the story that closely , but the areas I think that will be hit are probably now based in Connecticut.
so what else is new?
you know nothing but feel no compunction about insisting on outcomes.
you really are dumb, redbaiter
av's post is quite thoughtful, and very clear--and you opine in response, clueless to what it said
They're also firing everybody who works there.
Corporate welfare, what, us???! Let pay investment banks millions of dollars. That is the true spirit of entrepreneurship!
How is paying a bank to stay in a state any different than what happens with sport teams franchises?
Did you see how the CT unions caved? CT better be cutting taxes on the investment banks, some revenue is better than no revenue.
"I have not followed the story that closely , but the areas I think that will be hit are probably now based in Connecticut."
Wishful thinking... but no, I think that is off. Read the article, they have to maintain minimum headcount in CT as part of the deal.
from previous articles:
"Nearly half of the job cuts will be in the investment banking division, UBS said in a statement. The remaining cuts will come from the wealth management and asset management businesses."
They certainly have ibankers and wealth management in NYC. Note trading is not mentioned, and the football field is in CT.
There was a time when the nation's steel was produced in and around western PA.
Related industries fanned out like tentacles.
Some many people employed and so much money was generated that it became hard to believe that steel would not come from this place forever.
Where the great Allentown-Bethlehem Steel production facility once stood...now stands a casino.
I wonder how much longer this island retains it's banking and finance industry?
The reason NY has the talent is because the jobs are here. This is the reason the talent comes here. When the jobs move so does the talent. Can't get talent in CT? RU kidding me?
Maybe not kiddy talent but seasoned talent???
Hey, banker dad of two living in the 2 bedroom with the cranky wife, want to move your desk to Stamford, cut your commute to 20 min. buy a stupid big house with fair taxes and send your kids to a good public school?
"How is paying a bank to stay in a state any different than what happens with sport teams franchises?"
I am 1,000% opposed to that too!
Jason, are you a Connecticut taxpayer?