Largest bank in the country begs NYC for $1 billion to build new HQ

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Largest bank in the country begs NYC for $1 billion to build new HQ
NEW YORK, NY - AUGUST 12: JP Morgan Chase's corporate headquarters are seen on August 12, 2014 in New York City. U.S. banks announced second quarter profits of more than $40 billion, showing strong signs of a recovering economy. (Photo by Andrew Burton/Getty Images)
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By RYAN GORMAN

The nation's largest bank asked New York City for $1 BILLION in tax breaks to build a new headquarters in Manhattan.

Mayor Bill de Blasio has balked at JPMorgan Chase's request, but the state appears willing to play ball and is reportedly negotiating the terms of a package to help relocate the firm to Midtown.

"There was a discussion put forward to the city of a substantial amount of subsidy and, as deputy mayor (Alicia) Glen made very clear publicly, that's not on the table from the city's point of view," de Blasio said after a Monday press conference, according to Capital New York.

"We value JPMorgan as a major employer in this city for sure and we certainly look forward to their long-term presence here," he added. "If they're looking to switch locations and we can find appropriate ways to be helpful, we certainly will."

The mayor then said the bank's request "was in excess of $1 billion and that's a nonstarter."

If built, the two proposed towers would be part of the frantically rising West Side rail yards development on 33rd Street between 10th and 11th Avenues. They would have double the floor space of the Empire State Building, according to the New York Times.

The terms of the agreement would allow the bank to reduce its headcount in the city from about 20,000 to only 16,000, according to the Wall Street Journal.

Despite the possible layoffs or job transfers, JPMorgan Chase has insisted to the city that the economic benefits outweigh what it is asking for in return.

Lobbyists have argued that the city would no longer have to take $130 million a year from the annual budget to make debt payments on bonds issued to help finance improvements to the area around the West Side Yards, according to the Times.

The firm sold Chase Manhattan Plaza, a 60-story building in the heart of the financial district, for about $725 million last year.

It also reaped the benefits of billions in TARP funds during the Great Recession.

Time will tell if JPMorgan Chase also reaps the benefits of a massive tax deal while being allowed to relocate or lay off thousands of workers.

JP Morgan and Citigroup Report Earnings

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