Photo: Bloomberg - After Brexit, looks like New York will maintain its status as the world's financial capital.
The giant sucking sound you hear is bankers and traders abandoning LondonA decade ago, it looked as if London would replace New York as the world’s financial capital. Mayor Michael Bloomberg and Sen. Charles Schumer even endorsed a 2007 report that said New York needed to emulate how London did business or risk losing further ground.
But the financial crisis a year later damaged London’s bid for global financial supremacy. And Friday’s Brexit outcome ended it.
Even before the Brexit vote, London’s bankers and brokers had been seeing business evaporate. The city’s share of the world’s initial public offerings had slipped to 8% from 2007’s 13% through the beginning of this week, according to Thomson Reuters. The value of all companies listed on London's stock exchange has slipped to 6% of the world's market value from 7% in 2007, according to the World Federation of Exchanges. Meanwhile, the value of New York-listed companies accounts for about 40% of total capitalization, up from 36% in 2007.
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