Report: NYC May Lose Top Financial Spot

According to the study, by the consulting group McKinsey & Company, New York and other U.S. cities are falling behind in financial services while cities including London, Dubai, Hong Kong and Tokyo are surging ahead.

It concludes that the U.S. is losing its advantage because of three main factors:

_The American regulatory framework, particularly Sarbanes-Oxley, is "a thicket of complicated rules, rather than a streamlined set of commonly understood principles, as is the case in the United Kingdom and elsewhere."

_While New York offers a promising talent pool for its financial services work force, "we are at risk of falling behind in attracting qualified American and foreign workers."

_The legal environments in other nations "far more effectively discourage frivolous litigation."