Global Finance and Urban Living: A Study of Metropolitan Change (International Library of Sociology)

384 Pages·1992·11.01 MB·English

by  Leslie Budd

GLOBAL FINANCE AND URBAN LIVING
INTERNATIONAL LIBRARY OF SOCIOLOGY
Founded by Karl Mannheim
Editor: John Urry
University of Lancaster
GLOBAL FINANCE AND
URBAN LIVING
A Study of Metropolitan
Change
Edited by
Leslie Budd and Sam Whimster
London and New York
First published in 1992
by Routledge
11 New Fetter Lane, London EC4P 4EE
This edition published in the Taylor & Francis e-Library, 2005.
“To purchase your own copy of this or any of Taylor & Francis or
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Simultaneously published in the USA and Canada
by Routledge
a division of Routledge, Chapman and Hall Inc.
29 West 35th Street, New York, NY 10001
© 1992 Leslie Budd and Sam Whimster
All rights reserved. No part of this book may be reprinted or reproduced
or utilized in any form or by any electronic, mechanical, or other means,
now known or hereafter invented, including photocopying and recording,
or in any information storage or retrieval system, without permission in
writing from the publishers.
British Library Cataloguing in Publication Data
Global finance and urban living: a study of metropolitan
change.—(International Library of sociology).
1. Banking
I.Budd, Leslie 1949-II. Whimster, Sam 1947-III.
Series
332.1
Library of Congress Cataloging in Publication Data
Global finance and urban living: a study of metropolitan change
edited by Leslie Budd and Sam Whimster.
p. cm.—(The International library of sociology) Includes bibliographical
references and index.
1. International finance. 2. International finance-Social aspects. 3. City
and town life. 4. Urban economics. 5. Central business districts. I. Budd,
Leslie, 1949-. II. Whimster, Sam
1947-. III. Series.
HG3881.G573 1991
332′.042–dc20 91–14751CIP
ISBN 0-203-97709-2 Master e-book ISBN
ISBN 0-415-07097-X (Print Edition)
ISBN 0-415-03198-2 (pbk)
CONTENTS
List of illustrations vii
List of contributors ix
Foreword by Will Hutton xi
Acknowledgements xiii
Introduction 1
Sam WhimsterLeslie Budd
Part I Growth and dynamics of financial markets
1 LONDON’S FINANCIAL MARKETS: 30
PERSPECTIVES AND PROSPECTS
Leonard Stafford
2 LONDON AS AN INTERNATIONAL FINANCIAL 51
CENTRE
Jerry Coakley
3 FINANCIAL BUILDING BLOCKS IN THE 71
CONTEXT OF A CHANGING NATIONAL AND
INTERNATIONAL ENVIRONMENT
Nick Robinson
4 THE PRIVATE CLIENT STOCKBROKER: 93
HELPFUL AGENT OR RELIC OF THE PAST?
Michael Lenhoff
5 FRAUDBUSTING IN LONDON: DEVELOPMENTS 116
IN THE POLICING OF WHITE-COLLAR CRIME
Michael Levi
6 CULTURAL CONTRADICTIONS IN THE 138
LEGITIMATION OF MARKET PRACTICE:
PARADOX IN THE REGULATION OF THE CITY
Christopher Stanley
vi
7 OLD CITY AND NEW TIMES: ECONOMIC AND 167
POLITICAL ASPECTS OF DEREGULATION
Bob JessopRob Stones
Part II Patterns of culture, space and work
8 THE CITY AS A LANDSCAPE OF POWER: 198
LONDON AND NEW YORK AS GLOBAL
FINANCIAL CAPITALS
Sharon Zukin
9 CITY FUTURES 227
Keith Cowlard
10 THE COMING OF THE GROUNDSCRAPERS 249
Stephanie Williams
11 AN URBAN NARRATIVE AND THE IMPERATIVES 263
OF THE CITY
Leslie Budd
12 IN THE WAKE OF MONEY: THE CITY OF 285
LONDON AND THE ACCUMULATION OF VALUE
Nigel ThriftAndrew Leyshon
13 YUPPIES: A KEYWORD OF THE 1980s 314
Sam Whimster
14 BRICK LANE: A VILLAGE ECONOMY IN THE 334
SHADOW OF THE CITY?
Chris RhodesNurun Nabi
Name index 354
Subject index 359
ILLUSTRATIONS
PLATES
1 Battery Park City, New York
2 Inside the Broadgate complex
3 Broadgate Central Square
4 Bishopsgate frontage of Broadgate, Spitalfields market
foreground on right
5 Artist’s impression of Canary Wharf from Greenwich
6 Beaufort House, Aldgate
7 St Botolph’s Church, Aldgate, with Beaufort House in
background
8 Embankment Place, Charing Cross Station beneath
FIGURES
1.1 FT-SE 100 Index, September 1987 to October 1988 40
1.2 The crash and recovery: FT-SE 100 Index: Monthly 49
Close
3.1 Risk profiles 77
3.2 Hedging through ofseting arangements 78
3.3 General picture showing a payoff to a forward contract 78
3.4 Payoff to a call option on $10,000 81
3.5 Marking-to-market building blocks 83
3.6 Buying a call option and selling a put option to 84
produce a forward contract
3.7 Matching of borrowing costs to ability to pay 86
4.1 Types of stockbroking activity 95
4.2 Statutory framework for investor protection 97
8.1 Lower Manhattan and Battery Park City 210
8.2 New York City 211
9.1 Cityport past: opening of London’s docks 230
9.2 Portcity nature? 245
10.1 New developments in the vicinity of Broadgate 250
12.1 City work-force by area of residence, 1981 289
viii
12.2 Number of city workers within Greater London 290
boundaries, 1981
12.3 Full-time adult gross average earnings, 1979–88 292
12.4 House purchase analysis, 1984–86 305
12.5 House purchase analysis, 1987 308
TABLES
1.1 Current account balances, 1978 to 1985 33
2.1 Foreign banks by year of establishment in London 56
2.2 Banking centre shares of international lending (%) 59
2.3 Market share in international lending from London (%) 60
2.4 Foreign exchange turnover 61
2.5 Major stock exchanges, 1989 63
3.1 Amount and value of financial instruments 74
4.1 Costs of complying with Financial Services Act 98
4.2 The relative performance of UK equity unit trusts: 100
proportion (%) which underperform in any given year
4.3 Recommended model portfolio for private clients (%) 107
4.4 Correlation matrix of returns in equity markets 111
4.5 Average return and risk in equity markets (%) 111
8.1 Docklands and Battery Park City: a selective 222
chronology
9.1 Dock directors’ principal employments, 1864 231
9.2 Prime office site rentals, 1985–86 240
11.1 Stock market capitalisation as % of gross domestic 265
product
11.2 Insurance companies and pension funds portfolio of 275
long-term assets, 1964–89
11.3 Direct property investment from overseas 277
11.4 Annual sectoral change in employment in London 280
region
12.1 Top executives in City institutions by school and 295
university, 1986
12.2 The country-house-buying life cycle 309
12.3 Expenditure on a country house 310
CONTRIBUTORS
Leslie Budd is senior lecturer in Economics at City of London
Polytechnic. He is currently co-authoring a book on new forms
of economic partnership in Europe.
Jerry Coakley is senior lecturer in Economics at City of
London Polytechnic. He is co-editor of The City of Capital:
London’s Role as a Financial Centre (Blackwell) and New
Perspectives on the Financial System (Croom Helm).
Keith Cowlard is Head of Geography at City of London
Polytechnic. He is the author of Decision-making in Geography
(Hodder and Stoughton).
Bob Jessop is professor of Sociology at the University of
Lancaster. His previous publications include Thatcherism
(Polity).
Mike Lenhoff is Portfolio Strategist at Capel-Cure Myers. He
has held previous posts in academia and consultancy.
Mike Levi is reader in Criminology at University College of
Wales, Cardiff. His publications include Regulating Fraud.
White-collar Crime and the Criminal Process (Tavistock), Fraud
’89: the Extent of Fraud Against Large Companies and Executive
Views on What Should Be Done About It, with D.Sherwin (Ernst
and Young).
Andrew Leyshon is a lecturer in Geography at the University of
Hull. He is co-author of The Rise of the British Provincial
Financial Centre (Pergamon), and Making Money (Routledge).
Nurun Nabi is an associate professor in the Department of
Management at the University of Chittagong. He is currently
pursuing doctoral research at the City of London Polytechnic,
where he is also a consultant in Asian small businesses to the
polytechnic’s Access and Community Liaison Programme.