Will GS move IB to Dallas in 27/28? Will others towards the end of the decade?
I keep hearing rumors that more and more banks will move IB into Dallas from NYC. Does anyone know if this is true. Does anyone know which banks and groups are coming?
GS would be most likely since they're building a campus there. Dallas is already a major presence for them in other divisions and that'll stay. For IBD my guess is it'll be like other regional offices where a couple of MDs and juniors will sit there to cover Texas clients.
Highly unlikely they'll move entire groups out of NY since the majority of clients are still there
Okay so the people here have it overhyped? I know PCA is really strong in the city and ofc HL has a large office but not much besides that.
Yeah I definitely don't think every BB in the world is moving IBD there. There's some large F500 companies of course but bankers can cover them from NY just fine. If anything the trend right now is consolidating the regional offices into the main office and having the group all sit together.
BBs in genetal will likely continue to grow their presence there, but in things like wealth and middle/back office. Several large firms already have huge campuses in the DFW area (Citi, BofA, JPM) but they have very small or no IBD there.
This wouldn't make any sense lol. Dallas is just for energy banking..
.... You are thinking of Houston. Dallas has very little energy banking to speak of. It is primarily MM focused along with tons of PCA.
Heard they have a pretty strong equities presence there
Dallas will never become an IB hub. Every group with presence in Dallas has a presence in Dallas because some MD or MDs had a house in Dallas, wanted to live in Dallas or wanted to move to Dallas and lobbied their bank HQ to let them put their team in Dallas. Even then it's mostly a satellite office or co-equal office with NYC. It isn't the obvious hub for an industry like San Francisco or Houston and isn't a mega-hub of commerce like Chicago (also itself a natural hub for Industrials).
No bank will every say "we GOTTA move our teams to Dallas. MDs, pack your shit, you're moving to Dallas!" Because 90% of them would just quit.
It's the same story for every city in America with IB presence other than NY/Chicago/SF/Houston. If they have any banking jobs it's because an MD with pull just wanted to live there, there was some tiny regional boutique that got bought by a national bank and the seniors didn't want to move, or one bank has a big presence for historical reasons (e.g. Wells in Charlotte, Baird in Milwaukee).
So the argument for a drastically lower tax rate and COL is just TX politicians and old heads making a wish? Not disagreeing with you but do people really not care at all about that?
The lower tax rate really doesn’t make that big of a difference for the business. Most companies are HQd out of NYC. So most HQs will be there. If they wanted to move to a lower tax rate area they’d likely move to NC, FL, or Hou where banks have a large concentration of MDs who want to get out of NYC
Idk man, based on what I've heard from my friends in finance, I thought it was also only BO and MO, but some firms have moved entire FO roles to Dallas including IBD. The economics of the NYC "premium" are looking like they'll slip, and MDs already travel outside of NYC to meet clients since not all companies are HQd in NYC. I think all Dallas needs to do is further boost their airport to be even more of a global hub than it is already, and soon you'll have more international business flying in there.
Just like you say there is no reason for Dallas to become the next finance hub, there is equally no reason for NYC to stay as the finance hub of the US. Before it was locked in due to physical attendance at the exchanges, but ever since all trading went digital, and post pandemic remote work was integrated, people don't need to see each other every single waking second, so in person meetings have dropped off only being reserved for closing deals or flying to conferences.
I work in cyber security as a sales engineer, selling tech and I'm even noticing this trend where I don't have to be physically in NYC to close deals, I will absolutely fly to a client to help close a deal, but most of my work is done remotely and I sell everything through zoom meetings and emails. My AE works from NH, and we fly out to conferences as necessary. So only time will tell, but I'm seeing that my customers are all over the US, and NYC doesn't have them precisely due to how expensive it is to do business in NYC.
Interesting take. Is there any benefit in being there as the financial center of the future?
Looking at demographics, cultural trends, and proximity to the number of major firms HQs there and the business besides the well-established oil/gas (already covered in Houston). Besides MDs/Partners who like Dallas for personal/petty reasons, what else might tip the scales in Dallas' favor in the future?
And besides the whims of MDs and Partners, what about the next generation coming up? Is NYC still and always the only place to be? What would it take for Dallas to seriously compete?
Don't think that investment banks will change their HQ or where most of their investment bankers sit but can see Dallas be a compelling city to grow an IB presence. Obviously cheaper than building out more in NYC and beneficial tax treatments being in Texas. I think you'll probably see more regional investment banking coverage sit in Dallas. Lot of good middle market companies that can be reached being based out of Dallas vs NYC. I think you are already seeing other banks who want to have more of that middle market feel and regional touch by building out teams in other cities including Dallas. A lot of investment banks including GS are seeing the value of MM coverage so there should be more banking jobs in areas like Dallas over time.
The articles about these Dallas jobs are pretty clear…it’s a bunch of random functions
GS has always had some legacy real estate jobs out there (Archon?)…JPM has a Plano office that does IG credit
MO and BO mostly with some RE, PWM and PC roles but trad FO banking hubs are NYC, SF, Chiraq and Houston and that’s not changing
Laborum ut recusandae ullam. Officiis autem et aut vel.
Rerum in maiores dolores itaque similique. Cupiditate necessitatibus et quis fugit sit qui labore. Ex quia asperiores dolores excepturi dolor autem.
Et sed aut eveniet possimus voluptates voluptate enim. Consectetur consectetur dolorem tempora ut et doloremque enim. Maxime esse nesciunt voluptas veniam vero.
Laborum voluptates iusto vero iste est sed amet aut. Dolores voluptatum ex numquam dolorem ea. Voluptate vel sed et at nemo voluptate. Voluptatibus atque ipsum nesciunt. Totam aliquid iusto enim illum. Velit est doloribus blanditiis quo sit maiores.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...