Governor Dannel Malloy says banking giant UBS may renege on its commitment to keep 2,000 jobs in Stamford. He made the remarks during an interview with the owners of the Stamford Advocate.
UBS is one of Stamford’s largest and most visible employers with an office and massive trading floor right next to the city’s train station. Governor Malloy first struck a deal with the financial giant back in 2011 in the midst of rumors that UBS was contemplating a move to Manhattan. The state extended a $20 million loan in exchange for a pledge to keep at least 2,000 jobs in the city until the end of 2016.
Malloy said at the time, “If we lost 2,000 additional jobs, beyond whatever number of jobs we might lose because of market conditions, that would have a $70 million direct impact per year on the state of Connecticut.”
But now he appears to believe the deal won’t stick. During an editorial board interview with Hearst Connecticut on Monday, the Governor said, according to the Stamford Advocate, "I don’t think they’ll make the full five years, I have my doubts."
Joseph McGee of the Business Council of Fairfield County said he's surprised the governor made those remarks, and he doesn’t believe new information has come to light about UBS’s position in the city. "When the initial deal was done between the governor and the bank, it was clear that they were in play," he told WNPR. "What did surprise me is the governor’s sense that they would not maintain their 2,000 jobs in the state – we had not heard that before. I mean, we’re hoping that a major piece of the bank stays here, particularly the wealth management piece will stay in Connecticut, so that’s an open question."
If Malloy’s speculation is correct, the bank would have to repay the full $20 million loan, in addition to $1.5 million in interest.
His remarks have given an opening to his opponent, Republican Tom Foley, who’s been attacking the governor on what he calls corporate welfare.
UBS declined to comment on the governor’s remarks.
