CME's threat to leave Illinois echoes Sears, CAT

[scandal 951]

To paraphrase a certain VJ poster, CME will actually pack up and leave Illinois when Sarah Palin and Donald Trump officially contest the GOP nomination. No sooner, no later.

Hint: CME is building a massive datacenter the size of 7 football fields in Aurora, about 40 miles west of the Loop scheduled to open Q1 2012. They are not, repeat NOT, leaving IL.

CME's threat to leave Illinois echoes Sears, CAT

(Reuters) - CME Group Inc's (CME.O) threat to leave Illinois in the wake of Governor Pat Quinn's 46 percent hike in the corporate tax rate marks the latest attempt by a large company to wrest concessions from the state.

"I'm going to do what's in the best interests of shareholders," CME Executive Chairman Terrence Duffy said on Wednesday at the company's shareholder meeting. "If that means opportunities are greater elsewhere, then we're going to look at those opportunities."

Those remarks were "posturing," a person familiar with the company's plans said on Thursday.

The "C" in CME stands for Chicago, and its downtown trading floor dates to 1848.

Still, playing the squeaky wheel can make financial sense with a governor known for making sweetheart deals with local companies.

After Sears Holdings Corp (SHLD.O) said last month it was looking at moving its corporate headquarters from Hoffman Estates, Illinois, next year, Quinn told reporters that he was sure something could be worked out for the company.

A week earlier, the state granted a tax break worth about $100 million over 10 years to Motorola Mobility Inc (MMI.N) to ensure the handset maker remains in the state.

Caterpillar Inc's (CAT.N) CEO said he plans to keep the equipment manufacturer in Peoria after meeting with Quinn about his concerns.

And last October, as the state's yawning budget gap loomed, Quinn announced a $3.5 million package to ensure Groupon Inc added 250 new jobs at its Chicago headquarters rather than in offices in other states. Groupon filed last month to go public.

NOT ENTIRELY WED TO WINDY CITY

Despite CME's long ties to Illinois, Duffy could conceivably make good on the threat to leave, analysts said.

Two of CME's biggest rivals, Manhattan-based NYSE Euronext (NYX.N) and Nasdaq OMX Group (NDAQ.O), match trades in neighboring New Jersey in part to take advantage of the lower tax rate there, Macquarie Capital analyst Ed Ditmire said.

"If it turned out that Michigan, for instance, had much lower tax rates, it's conceivable they could move certain assets -- not necessarily the headquarters, but as they are thinking about investing in new data centers and other centers of trading," Ditmire said.

Under the new Illinois tax law, put into force in January, corporations are taxed at a 7 percent rate. A new Michigan law signed in May taxes companies at a 6 percent rate. Wisconsin and Indiana have used Illinois' tax increase to try to woo companies from their Midwestern neighbor.

"We want to be in Chicago, but are concerned about the corporate tax increases," a spokesman said on Thursday when queried about Duffy's comments.

The tax hike means an extra $50 million on the CME's tax bill each year. Quinn also raised the personal income tax rate, which could make it harder to recruit employees, the CME and others have said.

[scandal 951]

Now the CBOE joins the mix. This threat is a little more credible as their electronic exchange is in NY4 in Secaucus NJ. Still, the CBOE trading pits are right here on LaSalle St, and no sign yet that the C2 electronic exchange is poised to take over the SPX trading - the most lucrative CBOE product by far. I think both the CME and CBOE threats to leave IL are effectively bluffs.

http://www.suntimes.com/business/5871992-420/cboe-joins-threat-list.html

CBOE threatens to leave Illinois, echoes CME’s tax complaint

Jun 10, 2011 5:21AM

A CBOE spokesman said in a statement that "economic realities" could force a move, althought it prefers to stay in Illinois. | Sun-Times Media file

It’s becoming a habit around here — another day, another stalwart of financial services in Chicago threatening to leave town.

On Thursday, it was the Chicago Board Options Exchange suggesting that higher corporate taxes in Illinois could cause it to take jobs out of state. The CBOE’s warning came a day after CME Group Inc. said the same thing. CME owns the Chicago Mercantile Exchange and the Chicago Board of Trade.

The options market, with its headquarters and trading floor at 400 S. La Salle, employs about 580 people, not including traders who use its facilities.

A CBOE spokesman said in a statement that “economic realities” could force a move, although it prefers to stay put.

“Our industry has become increasingly electronic and, if the environment becomes too unfavorable, business into our exchanges can be easily redirected to competitors in other cities through the flip of a switch,” the statement said.

Since June 2010, the CBOE has been a publicly traded company. It operates a separate, strictly electronic options exchange called C2 that is based in Secaucus, N.J.

The main cause of the avowed wanderlust is January’s increase in the corporate income tax rate in Illinois. The rate grew to 9.5 percent from 7.3 percent.

Terrence Duffy, chairman of CME Group, said Wednesday the higher rate is costing his company $50 million a year. Duffy also criticized the state for maintaining tax loopholes that grant favors to a few companies at the expense of others.

Data from Gov. Pat Quinn’s office showed that in the last year, it has negotiated tax incentives for 48 companies that have promised to create or retain jobs. The largest deal was the most recent, a package exceeding $113 million for Motorola Mobility Inc. to keep 2,500 people working in Libertyville.

Mayor Rahm Emanuel, a former CME board member, said he discussed the company’s concerns with its top executives. Emanuel declined to say if he will push their case for changes in state tax policy.

“I know their frustration. They acknowledge that the city has been great to them and the city is a place that they’ve prospered,” Emanuel said. “I also believe they believe that the city will continue to be a place where they can prosper.”

[Ironman140 45]

Maybe. We can get QUIN to leave also.

They rasied our taxs again . When will these Dems who run this state ever learn after all the work has moved to Texas ??

On another note Texas has account for 37% of job growth in the nation, since the ression.

I wonder if No state income tax- tort refrom has anything to do with it

[scandal 951]

Maybe. We can get QUIN to leave also.

They rasied our taxs again . When will these Dems who run this state ever learn after all the work has moved to Texas ??

On another note Texas has account for 37% of job growth in the nation, since the ression.

I wonder if No state income tax- tort refrom has anything to do with it

If you think life is so much better in Texas, then by all means feel free to move yourself to .... Texas.

I, for one, rather like it here.

[Ban Hammer 12,829]

If you think life is so much better in Texas, then by all means feel free to move yourself to .... Texas.

I, for one, rather like it here.

i heard chicago just opened up a new casino. if you hit the jackpot, you get an extra 50,000 votes

[웃 910]

You Know You're From Chicago When...

-You say "Wanna go with?" when you mean "Do you want to come with me?"

-You know what Kennedy, Dan Ryan, Eisenhower, Edens, and Bishop Ford, have in common and curse one of them daily.

-You know what "the Hillside strangler is."

-You can name three or four extra taxes nobody else pays.

-You know the difference between Richard J Daley and Richard M Daley.

-You can use two or three Daleyisms in context.

-You can imitate the Mayor's whine.

-You say Chicawgo and not Chicaago.

-You think going to a Bears game in single digit temperatures with a wind off the lake (and freezing rain) is fun.

-Da is a proper definite article.

-You expect corruption in local politics.

-You go to the Dells in the summer to get away from the other 20 thousand that followed you.

-You've been caught speeding in Wisconsin because you had Illinois plates.

-You guard your shoveled parking space with an old chair and unusable broom.

-You know why they call it "the Windy City."

-You know dead people who voted.

-You understand the Democratic machine and don't fight against it.

-You've never ever considered the idea of hiring non-union laborers.

-You've never been to Springfield.

-You know a good gyros joint.

-You know what Giordanos, Lou Malnati's, and Gino's have in common.

-You know when the last time the Cubs won a pennant.

-You know exactly how many cars are "legally" allowed to turn left after the light turns red.

-You don't know which ethnic "fest" to choose on any given Summer weekend.

-Your idea of relaxing and getting away from it all is Ravinia (with 10,000 others who have the same idea).

-You can recite many of "The Blues Brothers" lines and know where they filmed certain scenes.

-You consider paying someone to watch your car at a sporting event as just another "city tax."

-The "Living Room" is called the "front room"

-You don't pronounce the "s" at the end of Illinois. You become irate at people who do

-You measure distance in minutes (especially "from the city"). And you swear everything is pretty much 15 minutes away

-You refer to anything South of I-80 as "Southern Illinois"

-You refer to Lake Michigan as "The Lake"

-You refer to Chicago as "The City"

-"The Super Bowl" refers to one specific game in a series of 35 played in January of 1986

-You have two favorite football teams: The Bears, and anyone who beats the Packers!

-You buy "The Trib"

-You think 35 degrees is great weather to wash your car!

-You know what goes on a Chicago Style Hot Dog

-You know what Chicago Style Pizza REALLY is

-You understand what "lake-effect" means

-You know the difference between Amtrak and Metra, and know which station they end up at. You have ridden the "L"

-You can distinguish between the following area codes: 847,630,773,708, 312, & 815

-You respond to the question "Where are you from" with a side" example:"WEST SIDE", "SOUTH SIDE" or "NORTHSIDE."

-You know what the phone number is to Empire Carpet!

-You wear gym shoes, not sneakers.

-Your favorite melody to hum is "Bang,Bang,Bang-Skeet,Skeet,Skeet!!!!"

-You faithfully attended Lil Louis parties at The Bismarck.

-You GOT to have spaghetti at your barbecue.

-You are STILL a Bulls fan........

-You think kicking it outside of White Castles parking lot, (79th and Stony Island) is the "Freak Nik"

-You go to Harold`s and order 4 pc wing, mild sauce, salt and pepper.

-You have a picture of Harold Washington in your kitchen, living room, family room or basement.

-You have ever waited in line at Home of the Hoagy on 111th for 30-45 minutes for a steak samich wit cheese

-You have ever been to the Tiki Room lounge in Hyde Park

-You have Y made a special trip downtown because you had a craving for Garrett's caramel and cheese popcorn.

-You drink at bars called "Bud on Tap" or "Milwaukee's Best" -- no names, just beer signs out front.

-It's January and you see someone's kitchen chair in the street, and you know that if you're a responsible citizen and bring it back to the sidewalk you will be shot on sight

-You live two miles from work and it takes you two hours to drive there

-You don't flinch when you pay the fifth toll of your 45-minute car ride on the highway

-When you read a big story in the paper about mob ties in the city government, your first reaction is "So, tell me something I don't know."

-You know Lincoln Towing is Satan incarnate.

-You've paid $105 for towing, $30 for more than one "street cleaning" ticket, $58 for a city vehicle sticker, and $70 for a license plate sticker -- and chalk it all up to "neighborhood taxes."

-You pluralize grocery stores and retail chains: "I'm going to Jewels"; "I bought it at Targets"; "I couldn't find parking at Wal-Marts"

-You've taken the Red Line past the point where all white people get off and all black people get on -- or vice versa.

-You've cursed at a cyclist, pedestrian, or in-line skater on the lakefront path.

-You know the significance of State and Madison.

-You wonder if the fries will taste the same at Sammy Sosa's Restaurant.

-You don't miss Planet Hollywood.

-You're not ashamed of wearing a big fur Russian hat, or a headsock with one hole in it, in public from November through March.

-You actually get these jokes and pass [share] them on to [with] other friends from Chicago.

[scandal 951]

Maybe. We can get QUIN to leave also.

They rasied our taxs again . When will these Dems who run this state ever learn after all the work has moved to Texas ??

On another note Texas has account for 37% of job growth in the nation, since the ression.

I wonder if No state income tax- tort refrom has anything to do with it

United moving 1,300 positions to Chicago

CHICAGO, June 10 (UPI) -- The newly merged company of United Airlines and Continental Airlines is moving 1,300 jobs to downtown Chicago, the company announced Friday.

Mayor Rahm Emanuel and United Continental Holdings Chief Executive Jeff Smisek made the announcement at Willis Tower, where many of the staff will be moved, the Chicago Sun-Times reported.

United's total workforce in Chicago will now top 4,000.

Smisek said the positions are high-paying technology posts and will be relocated from Houston, San Francisco and elsewhere.

:whistle:

[Ban Hammer 12,829]

United moving 1,300 positions to Chicago

CHICAGO, June 10 (UPI) -- The newly merged company of United Airlines and Continental Airlines is moving 1,300 jobs to downtown Chicago, the company announced Friday.

of course, they can now rename it con-u airlines

Edited June 11, 2011 by charles!

[Bad_Daddy 2,209]

Seattle lost Boeing HQ to Chicago back in the late 90's due to over taxing them. Boeing warned them, Seattle didn't listen, and next thing you read on the front headline of the Seattle Times is Boeing went "bye bye" to Chicago.

[Mr. Big Dog 10,747]

I wonder if No state income tax- tort refrom has anything to do with it

Probably not looking at the situation in no state income tax and tort reformed Florida.

[scandal 951]

Nice list LI.

Note:I only moved to Chicago 2.5 years ago, so I'm hardly a native. But I certainly 'get' many of these.

You Know You're From Chicago When...

-You know what Kennedy, Dan Ryan, Eisenhower, Edens, and Bishop Ford, have in common and curse one of them daily.

Of course. The "Ike" (I-290) is my straight-shot downtown.

-You know what "the Hillside strangler is."

Sure. It's that mess on the Ike that's jammed up at 8AM on a Saturday, 10PM on a Sunday, you name it.

-You know the difference between Richard J Daley and Richard M Daley.

Yup. M is the one who tore up Miggs Field.

-You think going to a Bears game in single digit temperatures with a wind off the lake (and freezing rain) is fun.

Um, no, not really. That's what my living room is for.

-You expect corruption in local politics.

Corruption? In Chicago??

-You go to the Dells in the summer to get away from the other 20 thousand that followed you.

I go in winter for the skiing. There are 20,000 following me then too.

-You've been caught speeding in Wisconsin because you had Illinois plates.

Not yet, but it's just a matter of time.

-You understand the Democratic machine and don't fight against it.

I applaud it.

-You know what Giordanos, Lou Malnati's, and Gino's have in common.

Giordanos

-Your idea of relaxing and getting away from it all is Ravinia (with 10,000 others who have the same idea).

That, and North Ave Beach, Millenium Park, and Lincoln Park

-You don't pronounce the "s" at the end of Illinois. You become irate at people who do

Who does that? Seriously?

-You refer to anything South of I-80 as "Southern Illinois"

It is.

-You refer to Lake Michigan as "The Lake"

What else should we call it? The Asian Carp habitat?

-You have two favorite football teams: The Bears, and anyone who beats the Packers!

FUCKYEAH!!! :dance: :dance: :thumbs: :thumbs:

-You buy "The Trib"

I get it home delivered. It's a rag.

-You know what goes on a Chicago Style Hot Dog

Of course. No tomatoes on mine, please.

-You know what Chicago Style Pizza REALLY is

Square cut, party style.

-You know the difference between Amtrak and Metra, and know which station they end up at. You have ridden the "L"

Of course. BTW, that's just incorrectly written. Amtrak ends up at only one station - Union Station. Metra has multiple end terminals - Ogilvie, Union, and LaSalle St. terminal.

-You know what the phone number is to Empire Carpet!

-You've taken the Red Line past the point where all white people get off and all black people get on -- or vice versa.

Sure. Just hop on at Addison (Wrigley Field) and head south to 35thSt. (US Cell- White Sox), and watch the transformation at work.

-You know the significance of State and Madison.

Certainly. Ground Zero. The epicenter. The origin. (0,0)in Cartesian coordinates.

[Karee 4,189]

Nice list LI.

Note:I only moved to Chicago 2.5 years ago, so I'm hardly a native. But I certainly 'get' many of these.

Laugh they have that commercial in Detroit too. I didn't even have to play it to hear that annoying jingle in my head.

[scandal 951]

Update.

http://www.chicagobusiness.com/section/blogs?blogID=greg-hinz&plckController=Blog&plckBlogPage=BlogViewPost&uid=1daca073-2eab-468e-9f19-ec177090a35c&plckPostId=Blog:1daca073-2eab-468e-9f19-ec177090a35cPost:0ce755b6-5287-4a57-b854-3eac617ba6b9

Indiana offering CME $150-million tax break to move HQ

Posted by Greg H. at 9/30/2011 3:00 AM CDT on Chicago Business

So, just how much is Indiana offering CME Group Inc. to move its headquarters and perhaps other operations to the Hoosier state?

I hear the figure -- in net tax savings -- is a mouth-watering $150 million a year. That's from a reliable source who claims to have obtained the information from Indiana Gov. Mitch Daniels' office.

CME isn't commenting on who's offering what, though CEO Terry Duffy earlier in the week said he expects the headquarters matter to be resolved by yearend.

But, in a conversation with my colleague John Pletz on Thursday, Indian's top economic development official, Dan Hasler, stopped way short of waving us off that number.

Mr. Hasler wouldn't give a number himself. But when told repeatedly that Crain's has heard the $150-million figure and wouldn't want to lead people astray, Mr. Hasler declined to comment on the number or whether Indiana has made an offer to CME.

As I reported yesterday, Mr. Daniels is due in town early next week for a couple of appearances. I guess the media will have something to ask him.

[Gary and Alla 3,694]

So, as usual, Dems make consessions to the wealthy and soak the middle class. Oh yeah, Illlinois and Chicago are run by Dems.

[Obama 2012 1,714]

We're getting a bit over stacked with Major Corps here, but we'll make room for a few more if necessary!