Ken Winans has a bold idea: turn Las Vegas into the Wall Street of the West.
The president and chief investment officer for Winans Investments, a local investment management firm, said the valley could actually be the perfect place given its environment, geography and current rules and regulations. Wall Street is a colloquial term for the financial district of Manhattan, which also houses the New York Stock Exchange and is America’s top finance district.
Winans said Las Vegas could offer a cheaper alternative for many multinational, Wall Street-traded companies currently headquartered in New York or California and thinks the financial landscape is ripe for a sea change.
Winans started his professional investment career in the 1980s, working as an analyst in San Francisco and Chicago, however said the current western Wall Streets — San Francisco and Los Angeles — have become “financial ghost towns.”
As the Las Vegas Valley continues its push to diversify away from tourism and gaming, in part to help lighten any future economic shocks, Winans said all the ingredients are already in place for the valley to pounce on this idea. He spoke to the Las Vegas Review-Journal about this quest, and this conversation has been edited for clarity.
How could Las Vegas become the western Wall Street and why do you think this would be good for the city?
According to Morningstar, there are 3,245 mutual funds, 764 exchange traded funds and 1,164 separate account managers that still list California as their headquarters. Many are managed by global giants in financial services — iShares, Franklin Templeton, Pimco, and American Funds. I am sure many of their senior executives are doing serious “soul searching” that has led many other financial firms to flee blue states for the financial freedom of Tennessee, Texas, Florida or Nevada.
There are seven key advantages we have right now. A strategic location to Southern California cities and Phoenix. Also, easy access to Bay Area, Salt Lake City and Denver. Calm weather and disaster proof. Modern infrastructure and security. A business-friendly environment. Professional education and effective business associations. A strong work ethic and lower employment costs and a strong community and bipartisan support for diversifying into this industry.
Las Vegas would benefit because financial services jobs are high pay, and wouldn’t require significant amounts of land, water or power. A side benefit is that our current Las Vegas entertainment industry would benefit as these companies typically actively entertain clients and have numerous conferences.
What is the biggest challenge Las Vegas faces in trying to become a financial hub?
Nevada’s state government only spends 0.8 percent of its budget on economic development. There is bipartisan support for economic diversification into financial services, but we need a coordinated public-private effort to compete with Phoenix and Dallas. Simply put, “on the same page” in promoting business relocation to Las Vegas and showcasing our residential communities such as Summerlin and Henderson.
If you could fix one thing right now regarding this topic to help us achieve this goal, what would it be?
An official proclamation by the governor and leaders in the Legislature inviting California financial service companies to relocate their headquarters to Las Vegas. Refocusing Las Vegas as a community and not just an entertainment center.
Insist that the economic development officials of California, Arizona and Texas stop misrepresenting issues about Nevada and Las Vegas such as that we are mobster run and running out of water — just to name a few. You need to convince the spouses that this is a safe place to raise a family and better than in California.
What lessons can we learn from other cities in trying to become the Wall Street of the West?
We must expand professional education and licensing programs for financial services to expand local workforce. Dallas sold this as a key point. Update business regulations and tort reform against frivolous lawsuits.
How would Las Vegas adapt and change as a city if it did achieve this goal of becoming a finance hub?
Achieve a strategic goal of diversifying our area’s economy with high-paying jobs from an environmental low impact industry. The people moving here would fit well into our “work hard, play hard” western lifestyle. Financial service companies typically engage their communities in financial sponsorships and scholarships for cultural and civic, plus a massive influx of wealth, then Las Vegas would take its rightful place as not only an entertainment center but also commercial center.
Contact Patrick Blennerhassett at pblennerhassett@reviewjournal.com.
