Global banks are beginning to lobby the US and other governments to help them maintain London as the primary European financial centre (HERE). It seems they're concerned that Theresa May is putting the control of immigration above protecting The City. The BBC (HERE) are reporting the same thing with US bankers said to have stressed that "for the prosperity of the US and world economies" it was vital that uncertainly was "kept to a minimum" and that existing trade ties were "disrupted as little as possible."
It is also being reported that Phillip Hammond is preparing to ditch membership of the single market but is planning ways of allowing British based financials to continue to have access the Europeam markets (HERE). This might preserve The City at the expense of manufacturing industry and other services.
The stakes are huge but the UK has everything to lose and the EU everything to gain. I cannot see the European parliament approving a deal which delivers a bonus to the UK by allowing major global banks to conduct business across the EU while being regulated from outside the bloc. Why do it? If they can agree an interim solution giving the banks more time to move operations into the EU they will gain in the medium term and London will lose.
As soon as Article 50 is triggered and one or two banks start to get nervous about the outcome of negotiations there will be a rush to the exits. These are huge global businesses and they cannot afford to forego European trading.
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