Congress and the White House have reached an apparent agreement on a bailout plan for the nation's financial industry and it has big implications for New York City. Marking its first positive close this week, the Dow gained about 197 points to 11,022. The S&P 500 added 23 points to 1,209. And the Nasdaq composite surged nearly 31 points to 2,186.
Still, the volatility on Wall Street this month raises questions about the city's position as the financial capital of the world. I just got an e-mail from Brooklyn Councilman David Yassky, talking about the budget difficulties the city is likely to face, and at the end of it, he says this:
YASSKY: We must recognize that New York’s position at the center of the financial world is at risk. Merrill Lynch will soon be a North Carolina bank; the surviving parts of Lehman Brothers will be absorbed by a British firm; Bear Stearns has disappeared; and AIG has been taken over by Washington. To be sure, a new order will emerge, and the next generation of financial giants is likely to be found among the many smaller, nimble firms already operating here in New York. But our government must do its part by making sure the City remains a preeminent place to do business.
REPORTER: Here to talk to us about it is John Gapper, Associate Editor and Business Commentator at the Financial Times. Good afternoon.