One comment...Wall Street doesn't have a choke-hold on technical talent. For instance, most (I'm confident to say above 90%) people recruited by banking programs cannot write a single line of code. Excel macros don't count.
Ironically, I intro'd that reporter to 60% of the people in the story he quoted, including Carter Cleveland and Cody Brown.
Start-ups in NYC are increasing. Union Square Ventures is probably a good reason for the push of NYC software startups.