New York is facing a threat to its position as the world's leading financial centre, according to a report commissioned by Michael Bloomberg, the city's mayor, and New York Senator Chuck Schumer.Sarbanes-Oxley means job losses pure and simple.President Bush should be ashamed of himself for signing such a destructive piece of legislation.
If current trends continue, New York could lose up to 7 per cent of its market share, equivalent to 60,000 jobs, over the next five years. But much of that loss would be prevented if the US implemented legal and regulatory reforms, says the report by McKinsey, the consultancy.
Mr Bloomberg and Mr Schumer commissioned the study amid increasing concern over New York's declining share of global capital markets activity.
Concern has focused on the rise in the number of foreign companies choosing to list their shares in London and Hong Kong rather than in New York.
The report, to be published on Monday, says New York has also been losing out in areas such as derivatives, where Wall Street chief executives say they have been shifting business to London because of its more attractive legal and regulatory environment.
Financial services employment in London rose 4.3 per cent to 318,000 in the three years to 2005, while it fell by 0.7 per cent to 328,000 in New York, the report says.
Monday, January 22, 2007
Threat to New York as centre of finance
MSNBC reports:
