New York, January 22:
The city is losing its competitive edge and could give up its lead as the financial capital of the world in as little as 10 years, according to a report commissioned by Mayor Michael Bloomberg and Senator Charles Schumer.
On Monday at City Hall, the New York leaders were expected to discuss the report from consulting group McKinsey & Company. Bloomberg and Schumer have been concerned about what they say is a growing threat to New Yorkâ€™s position as a global leader.
According to the report, which was given to some reporters ahead of the announcement, New York and other US cities are falling behind in financial services while cities including London, Dubai, Hong Kong and Tokyo are surging ahead.
The report concludes that New York and the US are losing the advantage because of three main factors: - The American regulatory framework, particularly the Sarbanes-Oxley Act, is â€œa thicket of complicated rules, rather than a streamlined set of commonly understood principles, as is the case in the United Kingdom and elsewhere.â€
While New York offers a promising talent pool for its financial services work force, â€œwe are at risk of falling behind in attracting qualified American and foreign workers.â€
The legal environments in other nations â€œfar more effectively discourage frivolous litigation.â€
One in nine New York jobs is in financial services, which contributes more than a third of business income tax revenues to New Yorkâ€™s economy. Nationwide, financial services is the third-largest sector of the economy, contributing 8 percent of gross domestic product, behind only manufacturing and real estate.
Bloomberg, a Republican and former CEO, spent years on Wall Street and built his multibillion-dollar fortune from the financial information company Bloomberg LP., which he founded in the early 1980s.