Griffin Cites Safety Concerns and Economic Consequences

Citadel CEO Ken Griffin informed CNBC that his firm has begun redirecting investment towards Miami, attributing the decision to a widely circulated tax video released by New York City Mayor Zohran Mamdani. Griffin expressed that Mamdani's video, which targeted wealthy individuals and their real estate holdings, has put him in a precarious position. He drew a parallel to the tragic assassination of UnitedHealthcare CEO Brian Thompson in midtown Manhattan, suggesting the mayor's rhetoric could incite similar dangers.

"In reaction to New York, we filed a permit with the city of Miami. We've added several hundred thousand square feet of new space in our new building," Griffin told CNBC's Sara Eisen in an exclusive interview at the Milken Institute Global Conference.

He further elaborated, "We will add far more jobs in Miami over the next decade as an immediate and direct consequence of the mayor's poor decision here, with respect to his posting of that video."

Park Avenue Redevelopment Under Scrutiny

Griffin also disclosed that Citadel's substantial plan to redevelop a Park Avenue building, an investment projected to exceed $6 billion and create over 15,000 permanent jobs, has become a subject of intense internal debate. Despite the scrutiny, he indicated a likelihood of proceeding with the project, stating, "But we probably will go through [with] the building when it's all said and done."

The hedge fund chief characterized Mamdani's video as being "in poor taste. Really poor taste." He stated, "I have no longstanding fights or issues or dynamics" with the new mayor, yet he "turned me into a political puppet."

Mayor's Office Responds

Joe Calvello, Mamdani's press secretary, responded to Griffin's comments, asserting that the mayor "wants all New Yorkers to succeed," including business owners and entrepreneurs who generate jobs. Calvello stated that while Griffin is a significant employer and economic figure in the city, the tax system is "fundamentally broken," rewarding extreme wealth while burdening working people. He emphasized the need for "meaningful tax reform that includes the wealthiest New Yorkers contributing their fair share" to make the city affordable for working people.

Mayor Mamdani, who assumed office in January, launched a new pied-à-terre tax on April 15th. This tax targets luxury properties valued over $5 million owned by non-residents who do not live in New York full-time. The promotional video for the tax was filmed outside 220 Central Park South, the building where Griffin purchased a penthouse for approximately $238 million in 2019.

"This is a fundamentally unfair system that hurts working New Yorkers. Now it's coming to an end." - NYC Mayor Zohran Mamdani (in video)

Mamdani stated the tax is projected to generate at least $500 million for the city. Griffin, however, countered that the pied-à-terre tax "discriminates against a narrow group of people." He concluded by saying, "The only decision that we've made with no regrets the last few days is to expand the size of our office footprint in our new Miami headquarters."

Griffin also cautioned that New York City and State require a government that addresses "bloated, wasteful government" and expressed concern that cities exhibiting arrogance in disregarding economic realities risk driving away those who contribute to success.