The financial titans of New York rallied around the city's billionaire mayor as he announced plans to seek a third term in office — a move that is at present illegal.

Prominent New Yorkers such as Henry Kravis and David Rockefeller joined Henry Kissinger, the former Secretary of State, in an open letter endorsing Michael Bloomberg's bid for another four-year term in 2009, which is barred by legislation on term limits

Ronald Lauder, the cosmetics heir, who funded a campaign for the original term-limits law, which was imposed 15 years ago, also came out publicly for an extension because of the financial crisis.

Mr Bloomberg said: “Given the events of recent weeks and the enormous challenges we face, I don't want to walk away from a city I feel I can help.”

The law restricting the mayor and other elected officials to two terms in office has been endorsed twice by voters. Critics said it should not be overturned without a referendum.

Betsy Gotbaum, the elected public advocate for the city, called the move “an insult to the democratic process”. “This is a decision for the people ... not for a few wealthy and powerful individuals,” she said.

Mr Bloomberg, 66, is credited with cutting crime and improving schools. Polls showed that he would beat any likely rivals.

The city council is expected to leap at the chance to revise the term limits because two thirds of councillors would be forced to step down next year.

Times Recommends

• Rio Tinto four held as China prepares case
• Diplomats must keep heads down and trousers up
• When in Rome should one make like Berlusconi?