Ken Griffin Moves to Address Economic Issues Directly with NY Governor

Ken Griffin, the founder of Citadel, is intensifying his conflict with New York City’s mayor, opting to meet directly with Governor Cathy Hochul regarding the state’s financial situation. This announcement came on Tuesday while he was participating in the World Financial Summit in Oslo.

The 57-year-old hedge fund billionaire, estimated to be worth about $50.5 billion, criticized Mayor Zoran Mamdani during a panel discussion. Recently, Mamdani has been campaigning for a new luxury real estate tax, using Griffin’s $238 million Manhattan penthouse as a focal point.

“What upset me was the personal attack,” Griffin remarked, emphasizing that the mayor’s choice to turn a policy discussion into a personal matter indicates poor judgment. Earlier this month, Hochul proposed a new tax on second homes valued over $5 million, which has garnered Mamdani’s support. This so-called pied-a-terre tax aims to help address New York City’s budget deficit.

Citadel, based in Miami, has voiced its objections to Mamdani’s attempts to leverage Griffin’s name in advocating for taxes on out-of-state homeowners in New York City.

The conflict piqued on April 15, which coincided with Tax Day, when Mamdani released a video outside Griffin’s building, directly calling him out for being a target of the proposed taxes.

This “pied-a-terre” tax would specifically target luxury secondary homes owned by non-residents. Advocates argue that the tax is vital for bridging the city’s persistent budget gap.

Griffin expressed concern that overly taxing the wealthy could negatively impact the city’s economy. “The real question is whether New York will manage its finances from a strong, pro-business stance,” he questioned the Norwegian audience. “Why do Americans think we can achieve socialism?”

As the head of a $67 billion hedge fund, he indicated that he would meet with Hochul to discuss the future economic direction of New York.

In a recent video titled “Happy Tax Day, New York. We’re taxing the rich,” Mamdani filmed himself in front of Griffin’s penthouse, amplifying the rhetoric surrounding this tax initiative.

This debate is already influencing the commercial real estate market in midtown Manhattan. Notably, Citadel is behind a significant $6 billion redevelopment project at 350 Park Avenue.

Following Mamdani’s video, Citadel’s Chief Operating Officer Gerald Beeson circulated an internal memo warning that hostile local politics might threaten the company’s growth in New York. He highlighted that Citadel and its employees have contributed around $2.3 billion in taxes to the city and state over five years.

In his email, Beeson referred to it as “shameful” that Griffin’s name was used to illustrate those allegedly not sharing the financial burden of New York City’s costly expenditures.