New York, The Waning Financial Power?
We’ve been covering a trend lately, at least it seems like a trend. New York seems to be losing more and more of its clout in terms of financial power. The NYT takes a fresh look (registration required) at this idea:
At a black-tie event this summer, some of the world’s most powerful bankers and business executives gathered for a toast: “We are the international finance and business capital of the world, the world’s greatest global financial center, without question,” the mayor told the assembled crowd.
But that was not Michael R. Bloomberg talking. The city was not New York — it was London.
Even as the Dow Jones industrial average reaches new highs and Wall Street companies report robust profits, by some measures New York’s long-held crown as the financial capital of the world may be slipping.
I would say it’s definitely slipping.
“There’s a genuine recognition that we need to make some changes,” said Laure Aubuchon, head of international business development for the New York City Economic Development Corporation. Winning financial business is “so important to New York City,” she said. The financial services industry makes up 9 percent of the city’s work force and provides 31 percent of the tax base, she said.
That’s great that there’s a recognition, a genuine one even, but what exactly will be done about it? The article doesn’t suggest much in the actualy way of change, but does lay out evidence for the claim. Worth reading.
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