ABSTRACT
This chapter looks at several structural dimensions that contribute to New York's competitiveness as a major financial center, and at incipient centralization or decentralization tendencies that may strengthen or weaken the city's competitive position. New York City forecasters had reason to predict a rapid downturn. Many of the new markets are unlikely to contract at once in the way in which stock markets historically have contracted during downturns. New entrants in the securities markets demand a much greater level of support and expertise from financial intermediaries in structuring issues. New York continues to innovate, witness, for example, the range of financial engineering developed around the booming markets for mergers and acquisitions, leveraged buyouts, and other asset restructuring deals. The introduction of new technology is contributing to a major transformation of front-office work, especially in trading areas. The expertise of New York-based business services has no equal but perhaps that of London-based firms.
