- Associated Press - Tuesday, October 21, 2014

STAMFORD, Conn. (AP) - A landmark deal between Connecticut and financial services giant UBS over jobs and state aid may be crumbling, Gov. Dannel P. Malloy said.

UBS may not keep 2,000 jobs in Stamford over five years as part of its 2011 agreement in which it received $20 million in state incentives, Malloy told the editorial board of Hearst Connecticut Media (https://bit.ly/10hnd5s) on Monday.

“I don’t think they’ll meet the full five years,” he said. “I have doubts is what I’m saying.”

A spokesman for Malloy did not immediately say why the governor believes UBS may fail to keep its end of the deal or if company executives communicated reasons to him or other state officials.

UBS declined to comment to Hearst Connecticut Media and did not immediately respond to a call from The Associated Press on Tuesday seeking comment.

If UBS fails to keep all the jobs, it must repay the $20 million forgivable loan and $1.5 million in interest. Malloy told Hearst last week that the incentive to UBS was vital to prevent the loss of 2,000 jobs.

“I’m confident that we’re going to hang onto a chunk of UBS, very confident,” he said last week. “I believe that they will continue to have a footprint.”

Republican challenger Tom Foley criticized Malloy’s economic development policies.

“It’s because we all know that corporate welfare doesn’t work and bribing companies to keep jobs somewhere,” he said. “If you can’t support those jobs without the subsidies, long term, those jobs leave because this governor is anti-business.”

Joseph McGee, vice president of public policy and programs of the Business Council of Fairfield County, expressed shock at the possible loss of UBS.

“Wow, that’s the first I’ve heard of that,” he said. “We’ve all been aware that there’s a good possibility that this company would leave. I think the governor’s comments steps up the urgency of what do you do with that building.”

The announcement of the deal in August 2011 was made with some fanfare in Stamford, which is Malloy’s home city and where he led as mayor for 14 years.

“We want to stay here in Stamford for the foreseeable future,” Philip J. Lofts, chief executive of UBS Group Americas, said as the deal was announced.

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Information from: Connecticut Post, https://www.connpost.com

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