Firm Hired To Boost City’s Competitive Edge Vs. London
This article is from the archive of The New York Sun before the launch of its new website in 2022. The Sun has neither altered nor updated such articles but will seek to correct any errors, mis-categorizations or other problems introduced during transfer.
The city is hiring a top consultant to increase its competitive edge over London in the financial services industry.
The city’s Economic Development Corporation said yesterday it is hiring McKinsey and Company for $600,000 to formulate a strategy for New York City to maintain its title as financial capital of the world. A preliminary report is expected in about two months.
The hiring comes as London has gained ground on Wall Street in recent years, experts say, with expanding European markets, an explosion of activity in the hedge fund business and an increasing number of companies that are choosing to go public on the London Stock Exchange, as opposed to in New York.
Some say that London is benefiting from America’s Sarbanes-Oxley Act of 2002, sweeping legislation that created new corporate governance, financial disclosure, and public accounting standards for companies. Critics said the legislation increased the cost of doing business here.
In March, the city of London opened an office in New York City to attract businesses to relocate or expand to London.
Deputy Mayor Daniel Doctoroff said yesterday: “Together with Senator Schumer’s Office, we are looking to uncover the greatest opportunities and challenges for the City’s financial services sector, including those posed by the current regulatory environment, and we plan to develop a strategic set of initiatives that promote New York City’s competitive advantages and ensure the steady growth of the industry.”
The McKinsey study will include: An overview of the financial services sector worldwide, highlighting recent and historical trends; a comparative analysis of the financial services sectors of New York City and London and their current potential strengths and weaknesses; benefits and costs of potential policies and initiatives to determine how best to retain the city’s position as the financial capital of the world; and a comparison of these initiatives to current and planned London initiatives.
The competition and similarities between London and New York were the subject of a four-part series in the Sun earlier this month.
