EXCLUSIVE: Dallas Mayor warns a “flood” of Wall Street firms could leave New York City under Mayor Mamdani’s policies — saying Texas is ready to replace NYC as America’s next financial powerhouse. Tax hikes, rent freezes, and heavy regulation may push banks and investment giants to “vote with their feet.” Dallas says the trickle is about to become a surge.
Dallas Mayor Predicts ‘Flood’ of Wall Street Firms Fleeing NYC Under Mamdani
The mayor of Dallas says he’s bracing for a “flood” of Wall Street firms leaving New York City — and he believes Texas could one day replace New York as America’s financial capital.
In an exclusive interview, Eric Johnson, the Republican mayor of Dallas, warned that New York’s new leadership is accelerating an exodus that was already underway. His comments come just days after Zohran Mamdani was sworn in and doubled down on a left-wing agenda that includes higher taxes on the wealthy, rent freezes, and expanded government control over housing, groceries, and childcare.
“What was already a trickle is going to turn into a flood,” Johnson said, predicting that firms which have called New York City home for decades will increasingly relocate to Texas.
Johnson, 50, went further — suggesting Wall Street itself could eventually lose its crown. He compared New York’s potential decline to Venice’s fall from dominance as Europe’s premier trading hub centuries ago.
“It’s not inconceivable that people will one day say, ‘Do you remember when New York was the financial capital of the United States?’” he said.
Working closely with Greg Abbott, Johnson has helped roll out aggressive economic incentive packages — including tax breaks and grants — to lure major financial institutions such as JPMorgan Chase, Goldman Sachs, Wells Fargo, and Canada’s Scotiabank.
The strategy appears to be paying off. JPMorgan, led by CEO Jamie Dimon, now employs more people in Texas than in New York. Over the past decade, Dallas has added more than 100,000 financial services jobs, making it the second-largest financial hub in the country.
“The action isn’t here anymore,” Johnson said of New York. “The action is in the western part of the country.”
His warning echoes comments made late last year by Fortress Investment Group co-CEO Drew McKnight, who described Dallas as a serious rival to New York for attracting top financial talent.
Mamdani, a former state assemblyman, has shown no sign of backing down. Upon taking office, he reaffirmed campaign promises to freeze rents and raise taxes — including boosting the corporate tax rate to 11.5% and imposing an additional 2% personal income tax on earners making over $1 million. His administration claims the measures could raise roughly $9 billion annually to fund social programs.
Johnson dismissed those policies as an “un-American socialist impulse,” adding that New York officials beyond Mamdani share responsibility for driving businesses away. He pointed to discussions in Albany about a transaction tax, which he says sparked early conversations with New York-based firms about relocating — and helped motivate the launch of the Texas Stock Exchange, set to debut later this year.
By contrast, Johnson pitched Dallas as a pro-business alternative: no state income tax, falling property tax rates, cheaper housing, strong schools, and faster permitting for major developments — including Goldman Sachs’ new $700 million Dallas campus expected to employ 5,000 people.
“You’re talking about one place trying to invent new taxes,” Johnson said, “and another where we’re cutting the only major tax we have — and don’t even have an income tax.”
Federal regulations still apply regardless of location, he noted, but Dallas offers something New York increasingly does not: affordability and quality of life.
“You can have the best of New York,” Johnson said, “but you can have it in a place where you can also afford a great home, send your kids to good schools, and feel safe.”
Whether New York’s dominance truly fades remains to be seen — but if Johnson is right, the quiet migration of Wall Street may soon become a very loud one.
