Goldman Sachs, the investment bank behemoth that controls nearly $2 trillion of assets, has reportedly explored shifting some of its key operations out of Manhattan, which has one of the highest costs of living in the world and is one of the most taxed places in the United States.
According to Bloomberg News, Goldman is eyeing south Florida — in the area north of Miami, such as Fort Lauderdale and Palm Beach — as the new base of its asset management division.
Sources told Bloomberg News that executives have been scouting out potential office space and talking to local officials about the benefits of moving one of Goldman's major operations to the area, including the tax and lifestyle advantages, which are attractive to the business and employees.
In fact, moving one of its top operations to Florida could save Goldman hundreds of millions of dollars, or more, per year, considering the amount of money the bank generates.
More from Bloomberg News:
Inside Goldman, sentimental attachment to the city where it rose to prominence is taking a back seat to the company's ambitious target unveiled early this year to cut $1.3 billion in costs, in part by shifting employees to cheaper locales. It's unclear how many people could eventually go to Florida. In the last decade, Goldman has incrementally expanded offices in places like Dallas and Salt Lake City to thousands of jobs in an effort to trim expenses. The virus has cemented its resolve to accelerate that shift.
The firm's newly reconfigured asset-management division pulls in about $8 billion in annual revenue and is a critical pillar of Goldman's plans to diversify its ways of making money. A decision to create a central location for the business in Florida would not only include back-office staff but also some investment professionals, two of the people said. The shift would be carried out over time.
What did Goldman Sachs say?
In a statement provided to Bloomberg News, the bank played coy.
"We are executing on the strategy of locating more jobs in high-value locations throughout the U.S., but we have no specific plans to announce at this time," a spokesman for the bank said.
Goldman Sachs is not the only company exploring a reprieve on taxes, regulations, and cost of living.
According to CNBC, billionaire Elon Musk has told "several of his close friends and associates" that he plans to move to Texas from California. Musk, the world's second richest person, has denounced Democrat-imposed regulations and high taxes.
Earlier this year, in response to COVID-related restrictions, Musk threatened to move Tesla's headquarters from Palo Alto to Texas or Nevada.