Letter From The Partnership For New York City

November 11, 2009

Dear Members of the New York State Congressional Delegation, The Partnership for New York City is an organization of business leaders who are committed to the continued success of the city and state economy. We are writing because we know you share this commitment and that you are working to develop policies that will lead us toward economic recovery and full employment. In that regard, we want to alert you to proposed legislation that could diminish America’s standing as a preeminent, global financial center and inflict particular damage on New York. This is the call for the preemptive and arbitrary break up of large, complex, and interconnected financial institutions. Enacting such a provision would give foreign competitors the opportunity to capture market share among the world's largest corporate and investor clients -- those that demand the huge capacity and global reach that only our biggest U.S. banks have. We cannot afford for proposals like this to make it into the financial reform package and we hope every member of the delegation will make it their business to oppose them. The "FIRE" sector – finance, insurance, and real estate - is particularly important in New York. It produced more than $363 trillion in economic output in 2008, accounting for 31.7% of New York's Gross State Product, and currently employs 684,100 people statewide. The securities industry has the greatest impact, with every Wall Street job responsible for creating or maintaining 3.3 additional jobs in other sectors. In terms of taxes, financial services represents 20% of the state and 12% of the city tax revenues. The global finance industry, with companies and top talent that could locate anywhere in the world, is heavily concentrated in New York, with benefits that reverberate across the country. To retain its position as a global financial leader, the U.S. needs institutions of all sizes, business models, and expertise. For a global city like New York, large, multinational institutions are what connect our local businesses, large and small, to markets around the world and attract foreign companies to come to New York to raise capital and generate jobs. (One out of nine employed New Yorkers works for a foreign company.)

November 11, 2009 Page 2

Reform of America's financial regulatory framework is essential. There are plenty of ways to achieve reform and reduce risk and taxpayer exposure without destroying institutions that are the anchors of our global financial center. We hope you will work with us to distinguish useful reform from overkill reactions. More than twenty top CEO members of the Partnership will be coming to Washington, D.C. next Thursday, November 19 at 11 a.m. to discuss the economic challenges facing New York and your districts with the New York Congressional delegation. We hope to speak with you directly at that session, called by Congressman Rangel. Thank you for your consideration. Sincerely,

Kathryn Wylde President & CEO