If you search you can find many discussions on this, none of them quite recent. London is overtaking New York in pretty much ... everything. The two things the US used to lead, securitization and leveraged loans, are suffering significant contraction. There are many reasons for that, but the usual suspects are US immigration analness, increased and opaque regulation after Enron, and the simple fact that London is in a better geographical location. That said, the US is where innovation tends to happen and I would wager that it still trumps London in raw talent. Now that banks are migrating back to downtown Manhattan there are initial signs of a rebound (see this month's TM). Will NYC ever rebound and regain its place? Or the next thing we'll be comparing is NYC vs Hong Kong?