Goldman Sachs’ ability to cut a deal is well known but there are few better examples than the investment bank’s new headquarters building, which is rising in downtown Manhattan, just west of Ground Zero.
The investment bank managed to get $1bn in soft finance from New York to remain in Manhattan’s downtown area three years ago. It did so by holding out the threat that it might move across the Hudson River to a building in New Jersey.
Now, with the redevelopment of the Ground Zero site proceeding and luxury retailers such as Tiffany opening on Wall Street, downtown is once again an attractive place to be and the Goldman deal is looking embarrassingly generous.
That is certainly Michael Bloomberg’s view, as expressed at an Economist conference I attended today on the future of New York City.
Mayor Bloomberg did not quite go so far as to apologise to the New York taxpayer. But he had a warning for anyone else tempted to try to get a similar break now.
"Any of you who are thinking of building new buildings in the city now and expect us to pony up, forget about it," he said.
Typical Goldman. Always the special case.
