New York to replace London as world's financial capital

London is set to lose its much revered position as the world's largest financial centre following the credit crisis and subsequent increase in regulation.

The latest forecast from the Centre for Economics and Business Research (CEBR) warns the City will be overtaken by New York this year, before being pushed further down into third place by Singapore within the next three years. According to the Sunday Times, the CEBR said London was losing its dominance because of not only a shift from west to east, but also because MPs and the authorities had been "short-sighted over-regulation, penal taxation, and banker bashing." The loss of status could cost the economy about £30-£40bn in taxes, the report adds. London's financial centre has bee...