There is a meeting today at The Treasury between Phillip Hammond and various large bank and financial institutions (HERE). They are apparently seeking clarity on the government's plans for Brexit and in particular what this will mean for the passporting system that allows them to trade with other EU countries. Banks want to keep the status quo according to Bloomberg (HERE).
I am sure they will be disappointed. I don't think the government knows what it will get from the EU and even if it did, they will not tell the banks in case (a) it's bad news and (b) it leaks out. One unnamed banker said:
"If the government doesn't have a clear idea of what it wants the banks will just go," said one senior banking source, who asked not to be named. "They are not going to be hanging around waiting for the cliff edge."
I don't know what the government are expecting. The EU have already made it perfectly clear that banks will lose access if we leave (the last time just a few days ago HERE) but they continue to hold out the prospect that something can be negotiated. Other countries have no interest in conceding passporting rights when it is they who will gain when banks move to the EU. Bankers are among the most cynical of people and if one bank announces a major relocation you can bet there will be a domino effect.
This morning's Brexit Bulletin from Bloomberg says:
"Hammond's meeting is well timed. UBS Chief Executive Officer Sergio Ermotti said yesterday that he may have to move as many as 1,500 jobs, the equivalent of 30 percent of the total, from the U.K. Lloyds of London Chairman John Nelson warned on Monday that he and other insurers would be forced to go elsewhere if the government fails to secure continued access to the single market."
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