Did London Rise… or New York City Slip?
But none of these factors — even together — was ever enough to make London anything more than the Avis of global finance. For London to rise, New York had to slip and fall. And slip the Big Apple did. Since 9/11, New York has become an unfriendly place for foreigners. The same Russians, Indians and Arabs who are welcomed in London’s Heathrow airport complain of being treated with suspicion at New York’s JFK. Middle Eastern investors now sink their money almost exclusively into London. The nail in the coffin has been Sarbanes-Oxley (Sarbox), which placed onerous burdens on companies wanting to go public in New York. The result? Five years ago, New York had 60% of the global IPO market. Today it has 6.5%. Meanwhile London’s share has leapt from 9% to 26% — with Hong Kong making up the difference. Some quip that London should erect a statute to Paul Sarbanes and Michael Oxley in Trafalgar Square, in appreciation of their efforts on London’s behalf. London: Misplaced Exuberance? It’s ha
