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Big Banks may lose most from Brexit

mbig

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Many of the biggies made London the hub for EU ops. A Chunk of nice jobs could be lost as well.
But, for the record, I have Not decided either way on Brexit.
There are advantages. Perhaps later in this or other strings.
Due to their clout, and with UK govt's help, the banks may be able to make some kind of arrangement.

Who Loses the Most From 'Brexit'? Try Goldman Sachs - WSJ
The U.S. bank has made a big bet on London’s global financial clout
By Max Colchester - WSJ - April 11, 2016

A vast construction site in the heart of London is a testament to Goldman Sachs Group Inc.’s $500 million bet on the city’s global financial clout.But the bank’s new European headquarters might be a little emptier than planned if the U.K. votes in June to leave the European Union, Goldman’s executives say.

The warning underscores a twist in what is turning into an increasingly fractious fight over whether the U.K. should opt for “Brexit”: the business groups For years, big U.S., Swiss and Japanese investment banks have used the U.K. as a financial springboard into the EU. A key attraction: the right to seamlessly sell their services across 28 nations without having to get regulatory approval in each individual country. Today, the U.K. is a European hub for derivatives and foreign-exchange trading. Around half of the U.K.’s £6.9 trillion ($9.8 trillion) in banking assets are held by non-British institutions, according to Fitch Ratings.

To save on costs and build economies of scale, banks concentrated large chunks of their global operations in Britain. Come the vote on June 23, this structure could be blown apart. Big international banks “have the most to lose,” said Chris Bates, a partner at law firm Clifford Chance, who has advised several banks on their Brexit plans.

No one knows what exactly would happen if the U.K. voted to leave the EU. The process could take years. The U.K. might be able to negotiate access for its banks to the EU. Or it might not. But faced with the prospect of spending billions of dollars to rejig their operations, banks have been lobbying intensively against Brexit.

Among those leading the charge is Goldman Sachs. For three years, the bank’s executives have publicly warned about the downsides of leaving the EU. The bank has donated around $700,000 to a group which is lobbying against Brexit...
[.......]
 
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SocialD

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Many of the biggies made London the hub for EU ops. A Chunk of nice jobs could be lost as well.
But, for the record, I have Not decided either way on Brexit.
There are advantages. Perhaps later in this or other strings.
Due to their clout, and with UK govt's help, the banks may be able to make some kind of arrangement.

Who Loses the Most From 'Brexit'? Try Goldman Sachs - WSJ
The U.S. bank has made a big bet on London’s global financial clout
By Max Colchester - WSJ - April 11, 2016

Thanks for copying in the core of the article. WSJ only shows me the headers and wants me to subscribe half the time I go there.
Honestly I think its in the UK's best interest to sever itself from the EU. I'm sure a lot of Germans would like to do the same but I don't know that that's doable for them.
If have put themselves in risky positions and they lose then it was foolish leadership on their part.
 

Abbazorkzog

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Many of the biggies made London the hub for EU ops. A Chunk of nice jobs could be lost as well.
But, for the record, I have Not decided either way on Brexit.
There are advantages. Perhaps later in this or other strings.
Due to their clout, and with UK govt's help, the banks may be able to make some kind of arrangement.

Who Loses the Most From 'Brexit'? Try Goldman Sachs - WSJ
The U.S. bank has made a big bet on London’s global financial clout
By Max Colchester - WSJ - April 11, 2016

In that case I now support Brexit. Let this be an example to all victims of cognitive dissonance.
 

mbig

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Thanks for copying in the core of the article. WSJ only shows me the headers and wants me to subscribe half the time I go there.
Honestly I think its in the UK's best interest to sever itself from the EU. I'm sure a lot of Germans would like to do the same but I don't know that that's doable for them.
If have put themselves in risky positions and they lose then it was foolish leadership on their part.
Your welcome. That was only the first third, which is, I think, the Gist/issue.
WSJ is my home page, but I'm aware most of the articles are by subscription.
If someone, especially if more than one requests, I can/will either post or PM the rest.
Generally it is against the rules to post any more than what I have - or serially- but in cases like this I'm sure it would be acommodated.
I probably do lean to Brexit, but I am Not a British citizen. For non-Brits it could pose additional problems.
 
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OrphanSlug

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This story seems to overstate a Brexit in my opinion. We are acting like too many avenues into banking within the EU means any one nation's participation.

Banks will do what they do best, pursue a new path if demand for banking services is still there regardless. It seems to me that the EU would have to go to new steps just to make this story plausible.

GS would promote things as is, less cost to them simply because of the cost of international relationship change.
 

SocialD

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Your welcome. That was only the first third, which is, I think, the Gist/issue.
WSJ is my home page, but I'm aware most of the articles are by subscription.
If someone, especially if more than one requests, I can/will either post or PM the rest.
Generally it is against the rules to post any more than what I have - or serially- but in cases like this I'm sure it would be acommodated.
I probably do lean to Brexit, but I am Not a British citizen. For non-Brits it could pose additional problems.

I think the swiss could get away with it too but I don't know that they would exit.. for them I think they have insulated enough already.
just about any other country is pretty interwoven into the EU pretty deeply.
 

Baff

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The banks won't lose on Brexit.
Half the world is built on British money.

They need to borrow, we like to lend. Things will go on much the same.
 

Chagos

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The banks won't lose on Brexit.
Half the world is built on British money.

They need to borrow, we like to lend. Things will go on much the same.
You got anything to back up any of these claims?

Or is that just the way you feel?
 
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