Washington, D.C.--the nation's new financial center.

• Author: Roberts, Tyler
• Position: Washington insights

Washington, D.C., long the center of United States political activity, has found itself in the forefront of the financial crisis that has rocked the nation to its core. As home to the U.S. Congress, Washington is accustomed to political wrangling and discussion, while New York City has traditionally handled the country's financial sector.

Only now, with Congress tackling financial regulatory reform and bank bailouts, does D.C. find itself in the unique position of controlling both the power and the money. Its rise is not purely based on the legislation being passed through Congress. One only needs to look at the companies that are packing and moving to Washington to realize that it is the new powerhouse. Until the economic crisis, the city of New York reigned supreme as the global fiscal center. Now, that's no longer the case.

When President Barack Obama came into office in January 2009, he made a top priority of getting America on a firm economic footing. Working with congressional leaders, he has made a series of legislative strides to stabilize American businesses. Committees in the House of Representatives and Senate have passed significant legislation aimed at harnessing the financial sector, including greater restrictions on credit rating agencies and over-the-counter derivatives.

More legislation is pending--including jobs legislation that will give tax breaks to American businesses that hire new workers. This will be layered on top of previous efforts to save American jobs and businesses, including Washington's control of General Motors Corp. and the nation's largest insurance company, American International Group Inc.

Since the financial crisis and bailouts, numerous organizations have determined that relocating to Washington, D.C., is the most practical solution for their businesses. The proximity to Congress and administration officials allows direct political access for government contractors and other large companies.

Two companies that have chosen the D.C., location for their new headquarters are Hilton Hotels Corp. and Northrop Grumman Corp. These two corporate giants have signaled the importance of being close to elected leaders.

No longer do executives need to hop on a plane to meet with government officials. As with the case of Hilton Hotels, one only needs to take a short taxi ride for a meeting with D.C. decision-makers. Expect to see more major companies decide that Washington is their location of choice for their...