1 Broken Scooter, 4 Iron Cots, 1 Used Ford, 3 Cats, and 1 Small Room

Yet another Self-Important Blog.

Rohit Singh
Email Me

Use as directed or at your own risk.

These are a few of my favourite links.

Commenting and Trackback by HaloScan.com


Wed, 07 Feb 2007


Interesting article in NYT about the New York financial market's perceived decline in stature. It's behind the Times Select wall. However, if you've access to Factiva (many university libraries do), you should be able to read the article via Factiva:

"More important, the main reason companies are listing in their home markets is that globalization is not a lofty theory but has truly produced more competitive global markets. That means more companies will choose not to trek halfway around the world to raise money -- especially when fees in London are half that of the United States.

But if you are Mr. Schumer or Mr. Bloomberg, there are reasons to be alarmed.

As I.P.O.'s move, so does trading: where the company lists will dictate where there will be more liquidity, more hedging and more over-the-counter derivatives in the market where the underlying stock exists.

This is a boon for banks like Goldman Sachs and UBS, who will profit on underwriting companies from China to Mars. But the banker doing that deal will hail from China and his bonus will help inflate Chinese real estate, art and restaurant prices, not New York's. And as more companies list there, more institutions will seek to do business there -- hedge funds, for example -- generating more business for the Shanghai office and fewer taxes for New York.


New York will also have to accept that it will be a leader among global financial centers rather than the leader. And while it is natural that New York politicians strive to keep taxes and jobs at home, not even the newly enlightened Mr. Spitzer can buck globalization."

[/news] | | | permalink