BankTown Banking & Finance News

[videtur quam contuor]

Would a location here affect their ability to "front run" electronic trading?

https://www.investopedia.com/articles/active-trading/042414/youd-better-know-your-highfrequency-trading-terminology.asp

[atlrvr]

I mean, the concept of ultra-low latency is why the servers are in NJ just a couple hundred yards from the actual traders and algorithmic programmers, and why NJ feels pretty confident they can tax them without reprecussion.

 

As internet bandwidth improves, it's a bit less of an issue, and its pointless to try and compete on speed with HFT's.

Latency probably isn't a big enough issue for institutional asset managers or even bank traders to move, say for the high frequency trader niches, which def would need colocation infrastructure and an office very near by (but this is still many thousand jobs)

All that's to say, this isn't like the rural server farms.  Cost of electricity isn't a critical factor, it's proximity to as much internet bandwidth as possible, and an area that can support programming and finance talent.

[KJHburg]

Goldman Sachs wants to move major division (asset management) out of NYC  south Florida and Dallas are mentioned.  However wonder if Charlotte is being considered too as GS is the financial partner of Lincoln Harris locally.  Johno worked there too.  Hmmm.

Goldman Sachs eying Florida move for key division: report (nypost.com)

[SydneyCarton]

1 hour ago, KJHburg said:

Goldman Sachs wants to move major division (asset management) out of NYC  south Florida and Dallas are mentioned.  However wonder if Charlotte is being considered too as GS is the financial partner of Lincoln Harris locally.  Johno worked there too.  Hmmm.

Goldman Sachs eying Florida move for key division: report (nypost.com)

New Yorkers love South Florida’s tropical climate and beaches, but Fl.’s other big advantage is no state income tax and low property taxes.

NC’s competitors, Florida, Texas, and Tennessee, all lack state income taxes.  NC should follow suit.  I’m surprised that SC and Georgia haven’t.

The prospect of sitting under a coconut palm at the beach on 78 degree winter day is a potent selling point, but the tax issue is huge too.

Edited December 7, 2020 by SydneyCarton

[RANYC]

5 hours ago, SydneyCarton said:

New Yorkers love South Florida’s tropical climate and beaches, but Fl.’s other big advantage is no state income tax and low property taxes.

NC’s competitors, Florida, Texas, and Tennessee, all lack state income taxes.  NC should follow suit.  I’m surprised that SC and Georgia haven’t.

The prospect of sitting under a coconut palm at the beach on 78 degree winter day is a potent selling point, but the tax issue is huge too.

I'm keeping an open mind, but why do you say NC should follow suit?  Our state income tax didn't stop Centene's massive operation.  It didn't stop Honeywell.  I'd have to take the time to do the research to see if data back up my observations and anecdotes, but there's a type of despondent poverty and massive rich-poor gap in states without income redistribution that I, personally, see less of in a place like NC (I admit I could be wrong here) or in the Northeastern states.  NC must know what it is and what it wants to be for the people who love its natural assets and inherent strengths, before chasing models that other states have put into action.  

Edited December 7, 2020 by RANYC

[SydneyCarton]

The lack of state income tax would be a huge incentive.  Massive corporate HQ relocations are going to places like Texas. Honeywell isn’t Toyota or Charles Schwab.

Also, NC doesn’t offer extensive social welfare benefits that NE states do, and it never will.  I think that the general population will benefit more from having more good jobs come here than it would from government handouts funded by taxes.  
 

Lastly, NC will never have the extreme wealth levels that a few global cities like NY, London, SF, and LA do, so extreme income inequality (like those cities have) will not be an issue.

Edited December 8, 2020 by SydneyCarton

[RANYC]

35 minutes ago, SydneyCarton said:

The lack of state income tax would be a huge incentive.  Massive corporate HQ relocations are going to places like Texas. Honeywell isn’t Toyota or Charles Schwab.

Also, NC doesn’t offer extensive social welfare benefits that NE states do, and it never will.  I think that the general population will benefit more from having more good jobs come here than it would from government handouts funded by taxes.  
 

Lastly, NC will never have the extreme wealth levels that a few global cities like NY, London, SF, and LA do, so extreme income inequality (like those cities have) will not be an issue.

actually, i believe honeywell generates more annual revenue than charles schwab,  has more employees, and ranks higher on the fortune 500 list.

If you look at per capita spend, texas and NC governments are roughly on par with one another.  Texas appears to, on average, have more than double the effective property tax rates as those found in NC.  So maybe they don't get you on income, but they find a way.

Accountable, coordinated government spending isn't necessarily a handout.  Clean environment, landscape, infrastructure, top-tier education, safety net, competent professionals in government services are all noble aims for state government spending, versus a race to the bottom to see who can have the cheapest appeal.

i think NC holding its own quite well with no drastic changes needed (in terms of funding itself).  The changes we should seek are those focused on making our tax dollars go the distance in turning our youth into tomorrow's research analysts/logicians/critical thinkers/problem-solvers/skeptics/innvators.  And that's not just the job of schools, that's the job of all kinds of institutions and interest groups in each town and county. 

Texas is a massive state with a deeply entrenched natural resources economy that has "fueled" legacy wealth, which in turn has then seeded family offices and other investment firms.  It's also centrally located so firms needing footprints on both coasts find its geography convenient.  Chasing Texas by transforming our revenue structure isn't likely to yield the results you suggest, imo.

Just my personal opinion and don't expect anyone to agree, but I find much of Texas (not all) to be a plain, arid, hollowed-out wasteland, and a poster-child of the visual blight wrought by suburban sprawl run amuck. 

NC is verdant, lush, bucolic in many parts, with almost storybook landscapes in many of its parts.  Many of its towns increasingly attempt to hold onto a design heritage that serves locals, and engenders a sense of place.  

Edited December 8, 2020 by RANYC

[RANYC]

11 minutes ago, RANYC said:

actually, i believe honeywell generates more annual revenue than charles schwab,  has more employees, and ranks higher on the fortune 500 list.

If you look at per capita spend, texas and NC governments are roughly on par with one another.  Texas appears to, on average, have more than double the effective property tax rates as those found in NC.  So maybe they don't get you on income, but they find a way.

Accountable, coordinated government spending isn't necessarily a handout.  Clean environment, landscape, infrastructure, top-tier education, safety net, competent professionals in government services are all noble aims for state government spending, versus a race to the bottom to see who can have the cheapest appeal.

i think NC holding its own quite well with no drastic changes needed (in terms of funding itself).  The changes we should seek are those focused on making our tax dollars go the distance in turning our youth into tomorrow's research analysts/logicians/critical thinkers/problem-solvers/skeptics/innvators.  And that's not just the job of schools, that's the job of all kinds of institutions and interest groups in each town and county. 

Texas is a massive state with a deeply entrenched natural resources economy that has "fueled" legacy wealth, which in turn has then seeded family offices and other investment firms.  It's also centrally located so firms needing footprints on both coasts find its geography convenient.  Chasing Texas by transforming our revenue structure isn't likely to yield the results you suggest, imo.

Just my personal opinion and don't expect anyone to agree, but I find much of Texas (not all) to be a plain, arid, hollowed-out wasteland, and a poster-child of the visual blight wrought by suburban sprawl run amuck. 

NC is verdant, lush, bucolic in many parts, with almost storybook landscapes in many of its parts.  Many of its towns increasingly attempt to hold onto a design heritage that serves locals, and engenders a sense of place.  

and Centene way way bigger than both Charles Schwab and Toyota...combined!  Yes, we've only gotten the east coast HQ of Centene...so far...but you mentioned Toyota in Texas and that's just a regional placement as well.   

Edited December 8, 2020 by RANYC

[SydneyCarton]

You raise good points.  We have different perspectives, and I disagree with but appreciate yours.

Edited December 8, 2020 by SydneyCarton

[elrodvt]

The level of services provided by NC already stink. And we want to make it worse? I don't understand where the revenue would come from other than regressive taxes such as property. How would the budget get balanced while expanding to help the poor and improve infrastructure?

[KJHburg]

from the San Francisco Business Times about Wells HQ and other HQs in Texas and yes I fully agree with Mr Boyd.

Amid Bay Area exodus, will Wells Fargo, Uber or Chevron’s headquarters be next to go?

•  

By Mark Calvey  – Senior Reporter, San Francisco Business Times

Dec 24, 2020, 11:46am PST

 

With Oracle moving its headquarters to Texas, there’s a growing sense that it’s only a matter of time before another major Bay Area company takes its head office out of California.

There’s a short list of companies that already seem to have one foot out the door — whether it’s Wells Fargo (NYSE: WFC), with its CEO based in New York, or Chevron (NYSE: CVX) employing more people in Houston than it does in the Bay Area.

The Bay Area’s Fortune 500 companies often reiterate their commitment to the region — until one day unveiling plans to move their headquarters out of state. Such was the case with McKesson (NYSE: MCK), which told the San Francisco Business Times on Nov. 8, 2018, that its headquarters is in San Francisco. Three weeks later, McKesson disclosed that its headquarters was headed to Texas.

Site selection consultant John Boyd told me in April that a headquarters move is one of the easiest elements of a corporate structure to move since it can be done with the issuance of a press release — or dropping the news in an SEC filing, as was the case with Oracle.

“Companies no longer view the headquarters as simply housing its talent and real estate,” Boyd said. "They view the headquarters site selection process as an opportunity to rebrand the company and recalibrate its image in the marketplace."

Here’s a look at a handful of companies I’m keeping an eye on for a possible headquarters move out of the Bay Area and how what they’ve told me has subtly changed over time when I asked if they were considering doing so. One wants to be careful about reading too much into a corporate statement, but it’s good to be observant. Companies often choose their words very carefully when discussing sensitive topics, such as a potential headquarters relocation.

Readers hoping to hear the Bay Area’s corporate titans praise the region’s strengths as a place to do business or wax poetically about how they’ve done business in San Francisco since the Gold Rush, will be disappointed. 

Wells Fargo — The bank, founded in 1852 in San Francisco to handle the gold coming out of California, now has its largest employment center in Charlotte, North Carolina, and key elements of its C-suite in New York. Wells also aims to cut $10 billion or almost 20% of its annual expenses, so a headquarters move could be appealing.

“It would almost be malfeasance if Wells Fargo executives did not consider leaving California,” Boyd told me.

When I asked Wells Fargo in April whether the bank’s headquarters would leave San Francisco, a spokesman said: “Wells Fargo will continue to be headquartered in San Francisco. The company has a nationwide footprint, a nationwide customer base, and a workforce of 263,000 dedicated to serving our customers and communities during these challenging times and beyond.”

When I asked Wells on Dec. 23 about a possible headquarters move, the same spokesman said, “Wells Fargo continues to be headquartered in San Francisco, and we have more than 13,000 employees in the San Francisco Bay Area.”

[SydneyCarton]

Were it not for taxes and incentives, I couldn’t see companies moving to Texas.  Charlotte is much nicer.

[urbanlover568]

On 12/24/2020 at 8:28 PM, SydneyCarton said:

Were it not for taxes and incentives, I couldn’t see companies moving to Texas.  Charlotte is much nicer.

I can see Wells in Charlotte, but it's not even close for Chevron and Uber. Chevron would go to Houston and Uber in Austin.  Austin is becoming the next silicon valley for the Southeast and not as giant of a move from Cali. TX also has no corp and personal income taxes.  We will see what happens after the Pandemic, but I can see companies still embracing remote work so HQ relocations really wont matter too much. It's where the employees want to be is what will matter. 

[KJHburg]

This happened companywide at Wells a few years back and caused major troubles and delays in emails companywide.  I thought they fixed the issue and you could not reply to all throughout the entire company.   II guess not.  This caused major problems for my cousin who works in the bank and he was mad and frustrated by it all. 

From the Ledger 

""All of Wells Fargo celebrates Holly’s birthday
A staple of office culture is the dreaded reply-all email. It’s mildly annoying if you work in an office of a few dozen. But what if you work for a Fortune 500 company with 260,000 employees that is Charlotte’s 2nd-largest employer?

Wells Fargo workers found out on Friday afternoon, when an innocent birthday wish from one worker to another inadvertently looped in thousands and thousands of Wells employees — and then snowballed.

The fun apparently started when a worker named Kim sent an email to a colleague named Holly with the subject line “Happy Day.” She meant to cc her group but somehow wound up copying, from the sounds of it, the entire company. Then came the 200+ replies that went to everyone — versions of “please remove me from this list,” “it’s Katie’s birthday, too” and “stop replying to all” (accomplished, naturally, by replying to all).

As inboxes across Wells Fargo clogged, workers laughed about it on social media, using the hashtag #happybirthdayholly:

“Someone at work just basically sent a company wide email wishing a coworker a happy birthday and now my inbox is flooded with replies to all. Seems like 2021 is starting off on the right foot.”

“This went from funny to annoying then back to funny ”

“I still have not seen the ‘thank you everyone for the warm birthday wishes’ yet from Holly. This is the last time the entire company recognizes you.”

There were memes and more memes. A GoFundMe account “to get Holly from Wells Fargo the best birthday present ever.” “Happy Birthday Holly” merch in red-and-yellow Wells colors. It’s like a modern-day version of “Save Ferris.”""

 

[KJHburg]

Ally Bank quadrupling their space at Camp Northend for their tech lab.   and of course Centene is locating a tech office there.   Look for more companies to lease space in these creative spaces like here and over in the FreeMore Freight district area.  

Ally Financial tech lab takes larger office space at Camp North End - Charlotte Business Journal (bizjournals.com)

[JRNYP2C]

On 1/11/2021 at 9:11 PM, KJHburg said:

This happened companywide at Wells a few years back and caused major troubles and delays in emails companywide.  I thought they fixed the issue and you could not reply to all throughout the entire company.   II guess not.  This caused major problems for my cousin who works in the bank and he was mad and frustrated by it all. 

From the Ledger 

""All of Wells Fargo celebrates Holly’s birthday
A staple of office culture is the dreaded reply-all email. It’s mildly annoying if you work in an office of a few dozen. But what if you work for a Fortune 500 company with 260,000 employees that is Charlotte’s 2nd-largest employer?

Wells Fargo workers found out on Friday afternoon, when an innocent birthday wish from one worker to another inadvertently looped in thousands and thousands of Wells employees — and then snowballed.

The fun apparently started when a worker named Kim sent an email to a colleague named Holly with the subject line “Happy Day.” She meant to cc her group but somehow wound up copying, from the sounds of it, the entire company. Then came the 200+ replies that went to everyone — versions of “please remove me from this list,” “it’s Katie’s birthday, too” and “stop replying to all” (accomplished, naturally, by replying to all).

As inboxes across Wells Fargo clogged, workers laughed about it on social media, using the hashtag #happybirthdayholly:

“Someone at work just basically sent a company wide email wishing a coworker a happy birthday and now my inbox is flooded with replies to all. Seems like 2021 is starting off on the right foot.”

“This went from funny to annoying then back to funny ”

“I still have not seen the ‘thank you everyone for the warm birthday wishes’ yet from Holly. This is the last time the entire company recognizes you.”

There were memes and more memes. A GoFundMe account “to get Holly from Wells Fargo the best birthday present ever.” “Happy Birthday Holly” merch in red-and-yellow Wells colors. It’s like a modern-day version of “Save Ferris.”""

 

I heard that too on WFAE this morning.  I didn't find it funny in the least bit.  I have two mailboxes that were spammed basically all day and I had to keep deleting (carefully) those from the real work.  It was a true annoyance and after the dust settled, I actually felt bad for the person that it was coming from, because I heard she wasn't aware of what had gone wrong.

Look kids, it's 2021, you would have thought that by now, even after similar instances, to NOT REPLY TO ALL!!!  Well that fell on deaf ears.

[SydneyCarton]

Wells is not in good shape right now.  More than ever, they would have been a takeover target by Goldman; however, the anti-Wall Street administration that will  soon take power would never let that happen.

[slipperypete]

16 hours ago, JRNYP2C said:

I heard that too on WFAE this morning.  I didn't find it funny in the least bit.  I have two mailboxes that were spammed basically all day and I had to keep deleting (carefully) those from the real work.  It was a true annoyance and after the dust settled, I actually felt bad for the person that it was coming from, because I heard she wasn't aware of what had gone wrong.

Look kids, it's 2021, you would have thought that by now, even after similar instances, to NOT REPLY TO ALL!!!  Well that fell on deaf ears.

In the future, as long as you're accessing the mailboxes via Outlook, just use the Ignore feature.  It puts all the messages in the conversation straight in Deleted Items without popping new mail notifications. 

[kermit]

1 hour ago, SydneyCarton said:

however, the anti-Wall Street administration that will  soon take power would never let that happen.

Market performance (particularly bank stocks) since the GA runoffs suggests otherwise. (Today being the lone exception) 

 

Edited January 15, 2021 by kermit

[atlrvr]

That's because they expectations of a grillion $$$$$$ of spending, resulting in inflation raising long term rates (while fed keeping short term rates low)....this is very helpful for bank profits as the lend long term and borrow short term.... don't think there is any expectation that new admin will be regulatory or merger friendly, just core banking is going to be more profitable.

[JRNYP2C]

6 hours ago, slipperypete said:

In the future, as long as you're accessing the mailboxes via Outlook, just use the Ignore feature.  It puts all the messages in the conversation straight in Deleted Items without popping new mail notifications. 

One of my co-workers told me that AFTER the dust had settled!  I will most definitely remember that next time!

[KJHburg]

CEO of Truist speaks of the upcoming year in an interview with Biz Journal.

some interesting highlights 

""Covid-19 has also allowed the bank to accelerate its reductions in corporate real estate. It is on track to reduce its net space by 4.8 million square feet. About half of that was completed in 2020, with more heavy adjustments set for the first half of this year."""   major reductions I think are coming in the Atlanta market my thoughts.  Less so in Charlotte.

"""A technology and innovation center also is under construction in Truist's uptown tower. Executives are envisioning a space that connects engineers, product experts and clients, among others. That space is slated to open in the late summer or early fall."""   My thoughts I am not so sure now Truist will anchor a new building at this time on N Tryon until they run out of space in the Truist Tower. 

Truist Financial execs talk merger-related costs, ongoing integration - Charlotte Business Journal (bizjournals.com)

[urbanlover568]

3 hours ago, KJHburg said:

CEO of Truist speaks of the upcoming year in an interview with Biz Journal.

some interesting highlights 

""Covid-19 has also allowed the bank to accelerate its reductions in corporate real estate. It is on track to reduce its net space by 4.8 million square feet. About half of that was completed in 2020, with more heavy adjustments set for the first half of this year."""   major reductions I think are coming in the Atlanta market my thoughts.  Less so in Charlotte.

"""A technology and innovation center also is under construction in Truist's uptown tower. Executives are envisioning a space that connects engineers, product experts and clients, among others. That space is slated to open in the late summer or early fall."""   My thoughts I am not so sure now Truist will anchor a new building at this time on N Tryon until they run out of space in the Truist Tower. 

Truist Financial execs talk merger-related costs, ongoing integration - Charlotte Business Journal (bizjournals.com)

Truist is on a roll this year

Truist posts $1.2 billion profit, cuts 1,300 jobs. Hundreds of branch closures loom.

https://www.charlotteobserver.com/news/business/banking/article248605680.html

[DMann]

""""A technology and innovation center also is under construction in Truist's uptown tower. Executives are envisioning a space that connects engineers, product experts and clients, among others. That space is slated to open in the late summer or early fall."""   My thoughts I am not so sure now Truist will anchor a new building at this time on N Tryon until they run out of space in the Truist Tower."

Don't know how valid this is but I am hearing that the Shuttle Bay (tip of hat to the Enterprise 1701D) or former trading floor. will be turned into a "Park" for the building.  Figuring out now how to support the addition of tons of dirt to grow stuff!!!!!

[Desert Power]

On 1/14/2021 at 5:26 PM, JRNYP2C said:

I heard that too on WFAE this morning.  I didn't find it funny in the least bit.  I have two mailboxes that were spammed basically all day and I had to keep deleting (carefully) those from the real work.  It was a true annoyance and after the dust settled, I actually felt bad for the person that it was coming from, because I heard she wasn't aware of what had gone wrong.

Look kids, it's 2021, you would have thought that by now, even after similar instances, to NOT REPLY TO ALL!!!  Well that fell on deaf ears.

Not knowing how to automatically filter this out is really classic Wells Fargo.