Major Corporate Giveaways

Since our launch in 2000, Good Jobs New York has researched and posted on our website information on corporate subsidies over $1 million. Details on those subsidized firms are available in our Database of Deals. But, not all subsidy packages are created equal. The subsidy packages to the firms detailed in this section caught our attention thanks to a combination of factors including the egregious nature of the giveaway and access to public information allowing for analysis. We will update this information or add new firms when necessary.

Bank of America

One of the world's most profitable financial institutions, Bank of America has received two subsidy packages. In 2004 it received $42 million in Liberty Bonds and other subsidies from the city and state and a special lease arrangement with the Empire State Development Corporation worth up to $40 million for a Midtown Manhattan office tower that was developed by the Durst Organization and anchored by the bank.  Details about the Bank of America's 2004 subsidy and its terminated 1993 deal with the Industrial Development Agency is in our Database of Deals.


New York Stock Exchange

In 1998 New York City entered into negotiations with the New York Stock Exchange to subsidize the development of a new trading floor across from its current location. At its peak, the subsidy hovered close to $1 billion in various forms of public financing. In exchange for the benefits, NYSE was to commit to remain in its new facility for at least 50 years.  On August 1, 2002, almost four years after the first version of this deal was announced, it was pronounced dead by the NYSE Chairman Richard Grasso. Yet, taxpayers are still responsible for approximately $100 million in expenses associated with the plan.



In 2010 Pfizer announced it paid New York City $24.7 million in recaptured funds and penalties, after it relocated corporate offices and transferred hundreds of jobs to New Jersey and Pennsylvania.  As of fiscal year 2008 Pfizer received over $10 million in incentives from the Industrial Development Agency, as part of a $33 million (total allocation) incentive package.  


Goldman Sachs

In a rushed board meeting of the Liberty Development Corporation (LDC) on August 15, 2005 (the entity created to allocate the state's portion of 9/11 Liberty Bonds), members approved a resolution to allocate $1.65 billion in bonds for Goldman Sachs’ new headquarters across the street from the World Trade Center site. This is an increase of $650 million from the original $1 billion proposed the year prior for the firm. 



On November 14, 2006, the New York City Industrial Development Agency approved a deal to let Metropolitan Life escape a $27 million subsidy agreement made with the city in 2001 to relocate 1,750 jobs in Long Island City, Queens. Under the terms of the clawback provision (money back guarantee), the city was eligible to collect $24 million from MetLife for reneging on the deal.  Instead, the city chose to fine the company $5 million and obtain a promise from MetLife to retain at least 1,750 workers in New York City until 2026 (rather than 2021 as currently stipulated), and occupy at least 30% of the Queens office building until 2014.

In 2008, however, the IDA did begin to recapture benefits from MetLife. As of the agency's annual report from January 2011, about $17.9 has been recaptured, which is more than the company had received to date.

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