Brex and the City: International banking in a London outside the European Union

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Brex and the City

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A vote for Brexit may lead to a fracturing of Europe’s financial industry

THEY hoped—and believed—it wouldn’t happen. But now the world’s biggest banks must brace themselves for Britain’s departure from the European Union. Today bankers will simply be trying to weather the turmoil after yesterday’s vote. But in the weeks and months to come they will have to decide whether Brexit means shifting business and jobs away from Europe’s financial capital.

This morning’s numbers are frightening. Banks’ share prices have been hammered, and those of British lenders hit especially hard; the falls are all the harder for the pre-vote optimism that had borne the stockmarket up. Fear that Brexit might mean recession, plus sheer uncertainty, sent shares in Barclays and Lloyds down by almost 30% when the market opened. European banks were not spared: Deutsche Bank shed 21%, Credit Suisse and UBS 13% each. Shares in American banks with bases in London fell at the start of New …

Brex and the City: International banking in a London outside the European Union

UK Only Article: 
standard article

Fly Title: 

Brex and the City

Main image: 

20160625_brp521.jpg

Rubric: 

A vote for Brexit may lead to a fracturing of Europe’s financial industry

THEY hoped—and believed—it wouldn’t happen. But now the world’s biggest banks must brace themselves for Britain’s departure from the European Union. Today bankers will simply be trying to weather the turmoil after yesterday’s vote. But in the weeks and months to come they will have to decide whether Brexit means shifting business and jobs away from Europe’s financial capital.

This morning’s numbers are frightening. Banks’ share prices have been hammered, and those of British lenders hit especially hard; the falls are all the harder for the pre-vote optimism that had borne the stockmarket up. Fear that Brexit might mean recession, plus sheer uncertainty, sent shares in Barclays and Lloyds down by almost 30% when the market opened. European banks were not spared: Deutsche Bank shed 21%, Credit Suisse and UBS 13% each. Shares in American banks with bases in London fell at the start of New …