New York, California each lost $1T in assets as financial firms fled south
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The steady exodus of Wall Street banks and big tech firms from California and New York over the past several years has cost the states nearly $1 trillion apiece in managed assets, according to a new analysis by Bloomberg News.
The departure of companies like Elliott Management, AllianceBernstein and Charles Schwab has drained the two states of thousands of high-paying jobs, further burdening city and state finances by sapping tax revenue.
Commercial property markets have also buckled under the weight of the sudden exit of the finance industry, at the same time they are struggling to find new tenants amid the surge in remote work.
'GREAT MIGRATION' CONTINUES AS MORE AMERICANS FLEE TO FLORIDA, TEXAS
A truck is parked in front of a U-Haul facility on August 31, 2020, in New York City. (John Lamparski/Getty Images / Getty Images)
Bloomberg conducted the analysis by going through the corporate filings from more than 17,000 firms since the end of 2019.
The moves out of major metros like Los Angeles, San Francisco and New York City were often borne out of the desire for lower taxes and warmer weather.
From the start of 2020 through the end of March 2023, more than 370 investment companies – managing about $2.7 trillion in assets – moved their headquarters to a new state, according to Bloomberg. The overwhelming majority of the migration was from high-tax states in the Northeast and on the West Coast and into lower-tax states like Florida and Texas, which boast no income tax.
Florida was the top destination for companies
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