Last year, UBS began exploring moving back to Manhattan from Stamford, Connecticut, where more than a decade ago the Zurich-based bank had consolidated U.S. operations and moved thousands of employees.
Bloomberg reports that Connecticut Governor Dannel Malloy, the former mayor of Stamford, persuaded UBS to stay by giving it a $20m loan that won’t have to be repaid if the bank keeps at least 2,000 workers in Stamford until 2017.
The deal represents the dilemma facing the Democratic governor, who in his first two years in office gave companies a record amount of tax incentives, only to see the economy stall and the state budget fall into deficit.
'Connecticut doesn’t seem to be yet fully on top of what the competitive world looks like', said Fred Carstensen, director of the Connecticut Center for Economic Analysis at the University of Connecticut in Storrs. 'Financial services is like manufacturing. It’s not a sector that’s going to be a job creator'.
Connecticut, shaken by a mass shooting December 14th that left 28 dead, faced a budget deficit even as it is among 25 states where tax revenue has either matched previous peaks or will do so by this fiscal year.
Hit the link below to access the complete Bloomberg article: