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Connecticut Tells UBS to Take the Money and Stay

August 24, 2011

Trying to save jobs, Connecticut Governor Dannel Malloy yesterday announced $20mn of incentives to keep UBS' flagship trading floor in Stamford. The deal requires the bank to keep a minimum of 2,000 employees in Stamford for five years. It also settles uncertainty revolving around the bank moving traders to New York City. UBS currently has 3,500 employees in the state.

Not everyone is happy with the offer. Lawmakers and academics say Malloy may have gone too far. The governor has given out $120mn in tax incentives and forgivable loans to major corporations in his bid to change the state's anti-business image. Detractors say that Malloy's economic policy simply isn't viable in the long term. [WSJ, 8/24/11]