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> but it could be anywhere. > It's only inertia that keeps it in London Not at all! Over a decade in banking, I have witnessed this argument resurface time

by dxbydt 2y ago

> but it could be anywhere. > It's only inertia that keeps it in London Not at all! Over a decade in banking, I have witnessed this argument resurface time and again in the context of the US. Indeed, it's true that two of the nation's largest banks, Wells Fargo and Bank of America, are headquartered in Charlotte. Hedge funds predominantly anchor themselves in Greenwich. GS has relocated its back-office operations to Salt Lake City. JPMorgan conducts risk analytics out of Columbus. CC processing is entirely Wilmington, commodities desk entirely Chicago. However, despite these geographic shifts in various financial functions, the heart of the financial world remains unmistakably tethered to Wall Street. For the foreseeable future, the nexus of global finance will continue to pulse through New York City. To suggest otherwise is a fundamental misreading of the industry's deeply entrenched culture. Just as in London, where finance is inextricably woven into the fabric of the city, New York represents more than just a place—it is the embodiment of finance itself. The gravitational center of this world does not and will not shift to places like Utah, Ohio, Delaware or North Carolina. It is, and will remain, rooted in global financial hubs such as New York, London, Mumbai, and Hong Kong. To imagine otherwise is an exercise in futility.

oliwarner 2y ago
> Not at all! Well give them a reason to overcome that inertia (like Brexit and its regulatory mismatches) and they flee. New Financial's estimate is 10% of the sector has gone, mostly to Dublin, Frankfurt and Paris. And there's definitely a cost-driven pull towards the north of the UK too. Insurance more than banking has diversified. But that's slightly beside the point that, these are rich companies, and a few rich people. London is not Monaco, Geneva. Just 2% of London's population are liquid-millionaires (vs 35%, 15%). Other UK cities can probably beat it millionaires per capita if that's what's important. As soon as you look at median salaries, London does attract a premium, but £5k does not offset the insane costs.
- dxbydt 2y ago
  The goal of finance jobs is that if you are any good, you won’t stagnate at that median salary for long. You make do with the 5k for a decade, pay your dues, then work your way upto the 7 figure club. Atleast that’s what my predecessors did. Don’t know what the scene is like nowadays. Am not sure what it is you are proposing. London getting rid of finance is a quick shortcut to the poorhouse. At that point, you become a giant museum like the rest of europe. Wait for the cruise ships to offload 1000s of visitors to those castles everyday, then squirt them with water pistols because there are too many tourists. Finance is the only thing holding that place up.

by dxbydt 2y ago

oliwarner 2y ago

> Not at all! Well give them a reason to overcome that inertia (like Brexit and its regulatory mismatches) and they flee. New Financial's estimate is 10% of the sector has gone, mostly to Dublin, Frankfurt and Paris. And there's definitely a cost-driven pull towards the north of the UK too. Insurance more than banking has diversified. But that's slightly beside the point that, these are rich companies, and a few rich people. London is not Monaco, Geneva. Just 2% of London's population are liquid-millionaires (vs 35%, 15%). Other UK cities can probably beat it millionaires per capita if that's what's important. As soon as you look at median salaries, London does attract a premium, but £5k does not offset the insane costs.

dxbydt 2y ago
The goal of finance jobs is that if you are any good, you won’t stagnate at that median salary for long. You make do with the 5k for a decade, pay your dues, then work your way upto the 7 figure club. Atleast that’s what my predecessors did. Don’t know what the scene is like nowadays. Am not sure what it is you are proposing. London getting rid of finance is a quick shortcut to the poorhouse. At that point, you become a giant museum like the rest of europe. Wait for the cruise ships to offload 1000s of visitors to those castles everyday, then squirt them with water pistols because there are too many tourists. Finance is the only thing holding that place up.