Not too long ago, London was quite sure it had muscled out New York City (New York City news) for the title of the world's financial capital. The city had reason to crow, IPOs (IPO news) seemed to be shifting there, European investment banking was hot, and banks were streaming in to boost their European presence.

But the bloom is off the rose now. The anti-bonus (bonus news) sentiment in Europe seems to be even stronger than in the United States; certainly the prescriptions that were floated were more draconian. The same might be said for the backlash against the financial industry in general. And now comes news from Forbes that the number of big hedge funds (hedge fund news) fell to 55 this year in London from 65 last year, while in New York, the number fell to 118 from 120, "keeping the Big Apple streaks ahead of the competition." The United States has always been the preferred destination for hedge funds. Connecticut fares well, as do Maryland, California and Texas. 

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