Bloomberg: NYC Losing Its Financial Edge

NewsMax ^ | 1/22/07 | NewsMax

[broncoholic]

The city is losing its competitive edge and could give up its place as the financial capital of the world in as little as 10 years, a report commissioned by Mayor Michael Bloomberg and Sen. Charles Schumer has found.

On Monday at City Hall, the New York leaders were expected to discuss the report from consulting group McKinsey & Co.

Bloomberg and Schumer have been concerned about what they say is a growing threat to New York's position as a global leader.

[Alberta's Child]

As computer and communications technology has grown more advanced over the years, financial services have become increasingly seamless and are therefore not reliant on specific places anymore. The 9/11 attacks exposed a serious flaw in the old Wall Street model, for a physical stock exchange has become an anachronism.

It should come as no surprise that companies in this increasingly seamless sector would prefer to do business in places with less onerous regulations, lower exposure to lawsuits, etc.

I also find myself wondering just much influence Eliot Spitzer's strong-armed prosecutorial bent has had in New York, too.

[Aikonaa]

There's probably not going to be a 'financial capital of the world' in the future in the same sense as New York has been one. Decentralization enabled by technology, as you pointed out, is the way of the future. I for one welcome this development as centralization has always brought along leftism and statism with it.

[Sgt_Schultze]

It makes you realize why the largest bank in the US is headquartered in Charlotte instead of NYC.

[PBRSTREETGANG]

Schumer wondering why NYC is losing it's competitive edge?

You really have to laugh.

[Fierce Allegiance]

Uh, maybe because you tax the living hell out of everything, Bloomie?

[tcostell]

Don't be silly ... those high taxes are necessary to fund the host of government provided programs which are in turn needed to attract more business to the city.

The real problem is there are too many guns. Now if NYC could just find a way to get rid of those, we'd be all set.

[Alberta's Child]

Sure. Banking is a slightly different story, though -- since major banks usually locate in places where state banking laws are most friendly. This explains why so many banks have been located in Delaware over the years, and why so many credit card bills are sent to Delaware and South Dakota.

[ladyjane]

Charlotte has Bank of America and Wachovia headquarters and others. They just got a big TIAA-CREF division and Fidelity is planning its move to NC.

(In a related note another Mercedes dealership is opening.)

[Extremely Extreme Extremist]

The city is losing its competitive edge and could give up its place as the financial capital of the world in as little as 10 years, a report commissioned by Mayor Michael Bloomberg and Sen. Charles Schumer has found.

These clowns can thank the new guy in Albany for this. Spitzer should take some time and read Atlas Shrugged.

[Uncle Miltie]

Can you say Sarbanes/Oxley?

[2banana]

Funny how high taxes, massive regulations and basic socialism makes capital flee to areas where it is treated better...

[mysterio]

With a commie dictator like Bloomberg, this doesn't surprise me. But NYCers keep voting for the moron, so they must want the city to lose its edge.

[2harddrive]

The Financial HQ of the world is moving to Dallas....

[Quickgun]

Bloomberg & Schumer are the reason NY is losing it's edge IMHO.........

[kaboom]

Don't forget Spitzer the shakedown king.

[HamiltonJay]

Just be aware, the more banks that headquarter there, the bluer your voting will get... I've never met more people out of touch with reality, and burdened by white guilt than I have in the banking industry.

[July 4th]

We're not talking about competition with other US cities here. NYC is and will always be the core of financial wealth in America, because regardless of what back-office operations can be pushed to low-cost areas, deals still need to be done. The face-to-face is not going away.

The problem is that burdensome US regulations are driving investor-seeking businesses overseas for capital. London, Dubai, and Tokyo LOVE Sarbanes-Oxley beucase businesses don't want to deal with the cost of US compliance. If I were a small, high-growth tech company for example, I'd look to private equity and foreign stock markets before I'd look to NYC.

Sure, Spitzer's crusades play a part, but not a huge part in this process. In most cases, the decision not to list in NYC is made well before the politics are considered because the initial compliance cost has increased so much.

[Savage Beast]

"...New York and the nation are losing the advantage because of three main factors:

"The American regulatory framework...is 'a thicket of complicated rules'...

"...attracting qualified American and foreign workers."

Who wants to live in that crime infested jungle?

"The legal environments in other nations 'far more effectively discourage frivolous litigation.'"

This is what's killing American business, industry, and quality of life.

It has already priced medical care out of the reach of everyone.

The Medical Malpractice Crisis is a foreboding of things to come to the entire American economy and society. Imagine the entire economy in a mess such as the health care system now is.

Unless the American people come to their senses and stop the litigation crisis, it will doom the United States as surely as Western Europe and Russia are now doomed by their own foolishness.

[Niteranger68]

They can still be the world’s biggest soup kitchen.