From the AP via Newsday:
Report: NYC May Lose Top Financial Spot
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.
According to the report, copies of which were given to some reporters ahead of the announcement, New York and other U.S. cities are falling behind in financial services while cities including London, Dubai, Hong Kong and Tokyo are surging ahead.
…
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.“The financial services industry is one reason that the 20th century was the American century and that New York became the world’s capital,” he said in a statement. “This is one of many challenges to our long-term health and stability that requires we move beyond partisanship to find solutions.”
…
According to the report, the trends being observed today could result in significant setbacks: The United States stands to lose “substantial market share in investment banking and sales and trading over the next five years,” equal to billions of dollars.“The last thing that New York and the country for that matter need is to wake up one morning and find we are no longer the financial capital of the world,” Schumer said.
From MarketWatch:
NYC could lose up to 60,000 jobs in finance survey found:rpt
New York is facing a threat to its position as the world’s leading financial center, according to a report commissioned by Mayor Michael Bloomberg to be published on Monday, the Financial Times reported. According to the newspaper, the report by consultancy McKinsey has found that if trends continue, New York could lose up to seven percentage points of its market share, equivalent to 60,000 jobs, over the next five years. The report’s recommendations include clearer guidance for implementing Sarbanes Oxley corporate governance rules, securities litigation reform and easing visa restrictions, the Financial Times said.
Imagine the domino effect which would occur.
walk the streets, you would think your in
a third world country in many parts of
NYC.
I wonder if Edgewater will revert to what it once was? A toxic landfill with bums, prostitutes, heroin addicts and abandoned houses + cars
financial service in NY make up 5% of total employment and 25% of total compensation. the hit would be everywhere in NY/NJ due to ripple effects but the worst hit would be the ones in middle to top income range… closer to the top of the food chain IMHO.
bigwindow
The NJ gold coast will never fall, too much money too much prestige, everyone wants to live there!
Plus you have two populations with huge amounts of money or families with huge amount of savings to they are not affected by interest rates.
( get this is sarcasm? I would like to see some drops in fort lee but the above reason is why it will not happen )
I hear Paterson was a happening place at one time…
Great! So a dump in Allendale will go for $700K instead of $850K.
Speaking of Ft. Lee. Ugly dumpy, aned choking on traffic
“R Patrick Says:
January 22nd, 2007 at 8:10 am
bigwindow
The NJ gold coast will never fall, too much money too much prestige, everyone wants to live there!”
Ha, Ha – go look at the crumbling mansions of Trenton, Newark and North Plainfield.
Yeah, Fort Lee is over high-rise developed which makes for a great commute
thatbigwindow: and of course all fo those ugly over sized duplexes in either white brick or stucco.
Did I tell you that Oradell voted to dissolve the River Dell district?
Bergen: so what does that mean for River Edge???
Well if it goes through, it means a significant increase in taxes for RE.
In typical fashion however, the residents are ignoring it.
In conjunction with this article;
“UBS handled more equity deals in 2006 than any investment bank has in at least seven years. It arranged 247 share sales that raised $50.2 billion, compared with Goldman’s 183 for $59.3 billion, Bloomberg data show. To oust New York-based Goldman, the Swiss bank needs to maintain its lead in Asia, where companies are tapping the equity market at the fastest pace anywhere.”
“China’s domestic market will be the most important in Asia and the fastest-growing piece of business globally, so being early there is essential,”
“As soon as we got China right, we got the whole of Asia right,” said Rankin, who’s based in Hong Kong. “This is the real growth battleground for the securities firms globally.”
http://www.bloomberg.com/apps/news?pid=20601109&sid=aeqkZs7fGAo8&refer=home
I don’t understand how River Edge can have any more tax increases. My mother is paying around 10k a year. She will have to sell her house if the taxes go up any higher. Question is, who can afford it? Certainly not me…
thatbigwindow: Well, it is going to get worse, because away from what might happen with the River Dell district, there is a big addition bing constucted on Cherry Hill, which is expected to be opened in Sept of 2007, so more teachers will have to be hired, and teachers aides, and heating and lighting, and who knows what else.
The taxes are just going to continue to go up in an insane fashion, and it appears that all the residents either do not care, do not realize it, or are so fabulously wealthy, that it does not matter.
After all we are only “10 minutes to NYC” (recent real estate advertisement)
Wait, I thought wall street and its salaries/bonuses had no affect on housing?
isnt that what people always tell Richard?
ADA,
We are talking jobs not bonuses.
“Wait, I thought wall street and its salaries/bonuses had no affect on housing?”
Trophy properties?? Yes
500K cape in NNJ??? No
What kind of effect did Wall Street have in 2001-2003/4, when the industry was reorganizing thru massive layoffs??
And it is only a matter of time, before they lay off again, they over hire, and then they over fire, then they consolidate some more, automate some more, out source some more relocate some more , and net net the numbers employed by the street declines.
I have seen it all before. The grasshoppers will have to lean on their own.
Sorry should hav said the rasshoppers iwll have to learn on their own.
Sorry again, I think I need another cup of coffee. Last chance, should be the grasshoppers will have to learn on their own.
Bergenbust,
Sometimes when you know what it should say, the mistake is not noticed till it is pointed out.
Don’ t fret so much…..
KL
It’s not just the financial jobs lost, but all the additional ripple effect of the services and products catering to those people.
That would affect the 500k cape in NNJ