Today, Mayor Bloomberg, Senator Schumer and Governor Spitzer announced a report that shows NYC may not be the world's financial center in 10 years if government regulations stay the same. Fearing that NYC will become a "secondary city," Bloomberg and Schumer's report shows London has been gaining ground in attracting foreign business.
For instance, NYC has tougher immigration laws and a "complex and sometimes unresponsive regulatory framework," not too mention there's the lawsuit-happy atmosphere. London is perceived as being a friendlier and much easier place to do business, because there's one regulatory body. London's financial services industry grew 4.3% between 2002 and 2005, while NYC's grew 0.7%, and there's concern that cities like Hong Kong, Dubai and Tokyo will also attract business that could be coming to NYC.
Bloomberg, Schumer and Spitzer have a list of suggestions for New York - and the U.S. - to "sustain its global financial services leadership," which we have after the jump. And Schumer emphasizes, "This is not simply a New York issue. Seven states, including New York, have more than 10 percent of their state's GDP derived from financial services, and strong financial services are important to everyone regardless of where they reside or do business."
Photograph by nschaden on Flickr
* Provide clearer guidance for implementing the Sarbanes-Oxley Act; * Implement securities litigation reform with particular short-term emphasis on leveraging the SEC's existing authority; * Develop a common vision and a supporting set of shared regulatory principles; * Ease immigration restrictions facing skilled non-US professional workers; * Recognize IFRS without reconciliation for listing purposes and promote convergence of accounting and auditing standards; * Protect US global competitiveness in implementing the Basel II Capital Accord; * Form an independent, bipartisan National Commission on Financial Market Competitiveness to resolve long-term structural issues; * Modernize financial services charters and holding company structures; * Establish a public/private partnership to promote New York's local agenda by acting as the high-level liaison between individual industry participants and the city, as well as by driving forward the partnership's broader strategic plan for New York's financial services development. * More actively managing attraction and retention for financial services; * Establishing a world-class Center for Applied Global Finance, and * Potentially creating a special international financial services zone.