The banks have this week come back into focus, firstly with this article in The Telegraph (HERE) suggesting that New York may gain at London's expense over Brexit.
Then the French minister of finance Michel Sapin said he had been told directly by some US banks that it was not a question of IF they move some functions to the EU but WHEN (HERE). The Telegraph even claims it is already beginning to happen (HERE) but it isn't noticeable because rather than people moving, it is the jobs that are going. Work that would have been done in London is moving into the EU.
There is some irony here since The Telegraph told us in March that there wouldn't be an exodus of banking jobs after Brexit (HERE).
Also the chancellor has been saying the EU shouldn't shoot itself in the foot by damaging London since this wouldn't help European companies but Bloomberg has an article (HERE) saying London isn't that important to the EU.
“There are vested interests and people saying this for British interest,” said Karim Hajjar, chief financial officer of Brussels-based chemicals maker Solvay SA. “Skills are easily moved. If London can’t offer the platform, it can be recreated pretty quickly.”
Stefan Kraus, a London-based partner at German law firm Luther, whose clients include Bayer AG, Deutsche Telekom AG and Infineon Technologies AG, said the U.K. bankers’ and officials’ warnings sounded hollow, given that there are no rules barring EU companies from raising money via banks outside the bloc.
“It looks a bit like wishful thinking in the search for arguments,” Kraus said.
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