A great New York Times article (also run in the Herald Tribune) published today details many of the reasons London is surpassing New York as the world’s financial capital. Among the key factors cited are London’s more diverse labour market, problems getting people into the U.S. and the stricter regulatory regime in the U.S. epitomized by the infamous Sarbanes-Oxley law.

Of particular interest for TechCrunch UK readers, however, is the fact that London has already surpassed New York in terms of IPOs. According to the article, this year, through September $33.6 billion (US) was raised in London compared to $26.5 billion (US) raised in New York and London is predicted to beat New York again in 2007.