Big banks scrap tower plans

From the April issue: With their balance sheets covered in red ink, the major financial firms in the city are scuttling plans for new real estate projects — a move that could have broad implications for vacancy rates and leasing costs. In the last few months, several major banks have called off plans to build new towers in Manhattan, providing yet another sign that the days of Wall Street’s flush expansion are over. The most high-profile examples involve Morgan Stanley, Merrill Lynch and JPMorgan Chase. Morgan Stanley backed out of its commitment to move its headquarters to the Hudson Yards site just weeks before its partner, Tishman Speyer Properties, won the right to develop the site last month.