Over the weekend, investment bank Bear Stearns collapsed and sold itself to JP Morgan Chase. On the whole, the melt down at Bear Stearns may signal more trouble ahead for investment banks, a major industry in New York and in Jersey City’s waterfront business district. But at the same, the sale to JP Morgan may ultimately benefit Jersey City.
Bear Stearns considered relocating some offices to Jersey City waterfront in 2001. Later, under Governor Jim McGreevey, tax incentives for business relocation were withdrawn, and Stearns took offices in Brooklyn instead. JP Morgan on the other hand, has a larger presence in Jersey City with several office locations. With the absorption of Bear Stearns, there will no doubt be layoffs as the businesses consolidate. But with a large footprint in Jersey City already, JP Morgan may ultimately add some former Stearns employees to the Gold Coast.