London Falling

Those speculating over which city will replace New York as the financial center of the universe can cross London off the list. The Wall Street Journal reports that the collapse of mortgage-backed securities (many of which were created in London), increased regulation, and disinvestment as banks elsewhere are forced to pull their money out of the city, all spell hard times for the British capital. In fact, though New York may be ground zero of the financial crisis, its outlook may be rosier than its sister city’s. “While New York is the financial center of the world’s largest economy,” the Journal writes, “London is dependent on international business that some in the city fear may not return to the same levels as the boom years.”