All blogs
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Wall Street braced for ‘disorderly Brexit’, warns City
November 14, 2017
TOPLINE: A “disorderly Brexit” is now seen as almost inevitable by the world’s biggest banks — ranking on a par with a global cyber-attack as a threat to the international financial system, the City of London Corporation has warned.
SUMMARY: In a letter to the chancellor sent on Friday, Catherine McGuinness, chairwoman of the policy and resources committee at the City’s ruling body, offers her “detailed observations on institutional concerns” following three days of meetings with Wall Street bosses and policymakers in New York and Washington DC. “Fears of a disorderly Brexit are increasing,” she writes. “There are concerns that US jobs and global financial stability are threatened.”
Financial Times: UK Brexit minister insists Northern Ireland must leave customs union
November 10, 2017
TOPLINE: The UK’s Brexit minister has rejected EU warnings that Northern Ireland may need to remain in Europe’s single market and customs union after Brexit, saying the government will not accept any solution to the border issue that threatens Britain’s “constitutional and economic integrity”.
SUMMARY: Speaking after two days of Brexit negotiations in Brussels that laid bare the gulf that remains on key divorce issues, David Davis said that “frank discussions” had been had with the European Commission on Ireland, while insisting that the question will only be solved once talks begin on a future EU-UK relationship.
EU gives UK up to 3 weeks to make Brexit bill offer
November 09, 2017
TOPLINE: Brussels is giving Britain two to three weeks to set out how much it is prepared to pay in the Brexit divorce settlement, warning that the EU will otherwise struggle to prepare this year for a transition deal the UK badly wants.
SUMMARY: According to the informal deadline, unless London makes a big financial offer this month, the bloc may be unable to adopt guidelines for the transition talks at a crucial summit in December.
EU Financial Affairs Sub-Committee calls for urgent post-Brexit transitional deal
November 09, 2017
TOPLINE: In a letter to the Chancellor of the Exchequer, the UK House of Lords' EU Financial Affairs Sub-Committee is calling for urgent agreement of a post-Brexit standstill transition period for the financial services sector.
SUMMARY: The Committee wishes to bring the Chancellor's attention to the weight of evidence the Committee has received during its current inquiry into the future of financial regulation and supervision following Brexit.
ECB’s Nouy: Around 20 banks applied for EU licences after Brexit
November 07, 2017
TOPLINE: The European Central Bank’s chief banking supervisor has said that about 20 banks have applied for European banking licences in the wake of the UK’s decision to quit the European Union.
SUMMARY: Danièle Nouy, head of the Single Supervisory Mechanism, said that the “very sad” decision by British citizens had led to more work for eurozone supervisors.
A Brexit glitch that could hurt Europe
November 07, 2017
TOPLINE: Few doubt that the British economy will be severely hurt if the UK leaves the European Union without a new agreement on trade and regulation. But there are risks for the EU, too. One that's received too little attention concerns bank resolution.
SUMMARY: A cliff-edge Brexit could make it much harder for EU authorities to impose losses on investors in the event of bank failure. This, in turn, would put Europe's taxpayers at greater risk.
Grassroots Action Day for an NHS Safeguarded from Brexit Threat
November 06, 2017
The European Movement UK ran an Action Day on Saturday (4 November) to highlight the need to safeguard the NHS from the threats Brexit poses. The Action Day took place in 19 different locations across the UK.
Swiss bankers dismiss 'overtly pessimistic' UK finance job loss scenarios post-Brexit
November 03, 2017
TOPLINE: Anecdotal evidence given to IBTimes UK suggests the country's banks are looking to hire more employees in London.
SUMMARY: Leading Swiss Banks including the big two – UBS and Credit Suisse – and boutique private banks such as Julius Baer and Pictet, are actually looking to renew their operational focus and hire employees regardless, and not cut their headcount in London, according to anecdotal evidence given to IBTimes UK in Zurich, Switzerland's leading financial hub.
Commercial Risk Europe: UK regulator warns financial services firms nearing decision day on Brexit
November 01, 2017
TOPLINE: The UK regulator has warned that its financial services firms will start taking irreversible decisions on the location of operations and staff in the next couple of months, if the UK and EU fail to agree a transition deal as part of Brexit negotiations.
SUMMARY: Andrew Bailey, chief executive of the Financial Conduct Authority (FCA), said UK companies will start making firm Brexit contingency plans at the end of this year and into the beginning of 2018.
Speaking to a Treasury Select Committee, Mr Bailey said: “We tend to take the view that the end of this year, beginning of next year, is the point at which these things start happening.” He added that financial services need a firm commitment to a transition deal.
According to a report from the BBC, the Bank of England (BoE) believes 75,000 financial sector jobs could be lost when the UK leaves the European Union.
The BBC reports that the exact number will depend on the trading deal between the EU and UK, and in particular the position of financial services post-Brexit.
Banks and other major financial institutions have been asked to provide the BoE with contingency plans, should the two sides fail to reach a deal and the UK reverts to World Trade Organization (WTO) rules. Under WTO trading rules, UK financial services firms would lose EU passporting rights unless they have set up an EU-registered company.
Bank of England calls for Brexit withdrawal bill to address cross-border financial contracts
November 01, 2017
TOPLINE: Sam Woods, told a House of Lords select committee that having a bilateral agreement within the withdrawal bill was the central bank’s preferred option to ensure derivative contracts and insurance policies can still be serviced.
SUMMARY: UK banks hold around £20tn worth of notional derivatives contracts with a cross-border EU element, or around one-fifth of their overall holdings, Mr Woods said, with European banks holding roughly the same amount with UK entities.