London vs. New York - Which Will Emerge Stronger?

London vs. New York

A recent article claims that London will remain the financial center of the world, despite their efforts to put strict regulations in place across the financial and banking industries. Here is a short excerpt from this article:

Setting out his vision for change, the FSA's new chairman issued a stark warning that regulation will become far more stringent. However, this tough new line will not harm London's position as a premier financial centre, he claimed, because regulation worldwide will become more rigid.

In a statement intended to counter threats from hedge funds and other financial institutions that they may relocate if the UK becomes unattractive, he added: "We are not going to fall into the trap that we did in the past of trying to get a minor competitive advantage by making regulation a little lighter than elsewhere. The disadvantages of getting it wrong are hugely bigger."

What do you believe? Will New York or London emerge stronger in 3-5 years once this crisis has passed?