Bank analyst Dick Bove is known for provocative statements, and today he all but suggests that Wall Street and the rest of the financial industry should pick up and move from New York City to Charlotte.
He cites the flood of investigations and lawsuits from New York attorneys general, from Spitzer to Cuomo to Schneiderman, the last of which today announced a new mortgage-backed securities suit against JPMorgan Chase.
Bove says that Michigan doesn't sue the auto industry, and Texas doesn't sue oil. So why should financial companies stay in New York? He says the reasoning is more tradition than reason.
"Management should consider the benefits of moving their headquarters elsewhere. Shareholders should not be forced to pay for continuous lawsuits because these banks are in New York," Bove writes. "If the industry was located in Charlotte, North Carolina it would not be facing constant hostility it would be supported by a government that wants its business."
It's funny, sort of, because Charlotte is already concerned about waning influence in the banking world. Wachovia, the nation's fourth-largest bank at the time, sold to Wells Fargo for a pittance as it neared collapse. And Bank of America could have moved its HQ to New York had it tapped Bank of New York Mellon's Bob Kelly instead of Brian Moynihan -- who spends most of his time in Boston and New York anyway.
Tuesday, October 2, 2012
Would Wall Street be better off in Charlotte than New York?
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20 comments:
With $74B in pending writedowns, Wachovia was a failed bank with ZERO equity at the time of the Wells $7/share buyout, which was actually a gift to shareholders.
Come to North Carolina! Where buying Government is cheap and disenfranchising the native citizenry is done at a discount! For more information go to Carpetbaggerdotborg.
You know, you never hear about people wanting to retire and move up north. The reason they come here to the south is to leave all that mess behind. My only concern is that if they ever moved Wallstreet here, guess what? The attorneys and everyone else making their lives a mess up there would follow behind, because how else will they make a living? They love bringing their way of government and business with them. We've been seeing it (them) trickle down for the past few decades and in a few more there probably won't be much difference between our city business/government and theirs. If they feel so oppressed they really need to just stand up and fix it instead of running away.
Charlotte is much too far from the Hamptons and Per Se.
Simple logic behind all of those NY lawsuits against financial firms: New York has proven hostility towards profitable money-handling businesses! All Communi ...... err, I mean *Socialists*! - do!!!!!
Move all financial business OUT of New York. Then, move New York to North Korea - where it belongs!!!!
Wouldn't the banks still be subject to investigations and lawsuits in NY to the extent they still do business in NY (i.e., loans to NY customers). Presumably, the banks are not going to stop making loans to customers in NY. But, if the banks have activities in NY that are not aimed at the NY market, it sounds like it would make sense to move those operations to Charlotte.
Please don't move here.
New York bankers and southern slave holders have always been joined at the hip, especially with regards to treason against this republic.
A move to Charlotte by that foreign enclave called Wall Street would consolidate this traitorous relationship
I would welcome them with open arms. Anyone who is dumb enough to turn down high paying jobs, is too dumb to read this comment.
One thing is for certain whether investment firms relocate or not, NYC is a city winding down. Print media and broadcasting networks have lost relevance. Now, financials are HQ outside NYC with Wells in SF and BofA in Charlotte. Plus, the investment banks like Bear Stearns, Lehman, and Merrill Lynch imploded. Does Broadway even carry the weight it once did?
I imagine many companies in NYC these days would seriously consider a relocation to Charlotte or another bis friendly environ. Too bad Perdue and Foxx have taken some of the shine off our digs with all the tax hikes.
Doesn't "Trade Street" make a lot more sense than "Wall Street" anyway?
Interesting remark, since it's widely known on the Street that BOA is by no means wedded to Charlotte. When Moynihan leaves--and that's not if, but when, and it will be within the next year or two--it's open season on moving the head office to NYC.
Reading these senile Johnny Rebs is always good for a few laughs.
We can't afford all the ankle bracelets.
I have a house that they can buy-near SouthPark
A good topic to think - except Charlotte he should have picked Caymans - Look at the success of Romney! 37 corporations - no one can even touch what they are doing. Hey they pay so little tax that they don't even need to claim charity towards deductions.
No mess - Do whatever you want in Caymans!
This was little more than rhetorical posturing by Dick Bove.
Wealthy bankers aren't leaving the comforts of Greenwich, the Hamptons and all that glitter goes along with being part of the 1% in Manhattan. This is particularly true when you're discussing old companies with historic roots in Manhattan, like Chase, GS and Citi.
Bank of America remains hq here-sort of. But the wealth bidness (ML) is hq in New York.
What is more likely to happen is a break-up of big banks. Plain vanilla banks might then leave New York. But that's a lot if "ifs."
But no Wall Street/trading/hedge fund-focused business is leaving Wall Street, except for maybe small, newer firms to Jersey City or Greenwich.
Maybe then we'll get a decent bagel shop and deli...
Great bagel in Charlotte? Poppy's across from St. Gabes...rivals NY...period! An awesome bagel...
Translation: NY attorneys general do their job, while NC officials like Janet Cowell dump pension fund money into the Facebook IPO as a payoff to her BFF Erskine Bowles who sits on Facebook's board.
Quick, name the last productive thing NC attorney general Roy Cooper did.
Thought so.
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