Article 4964K Anxiety running high about London's future as a financial centre | Barry Eichengreen

Anxiety running high about London's future as a financial centre | Barry Eichengreen

by
Barry Eichengreen
from Economics | The Guardian on (#4964K)

The City isn't going to lose its status overnight, but can the loss of assets pre-Brexit be reversed?

Only now, as we approach the third anniversary of the UK's referendum on membership in the European Union, are the implications of leaving the bloc finally sinking in. One indication, amusing to those with a taste for black humour, is the marketing success of Brexit survival kits containing a water filter, fire-starting equipment and enough freeze-dried food for 30 days.

Another indication is the launch, at the end of January, of a parliamentary inquiry into London's prospects as a financial centre. This investigation is a response to prominent financial firms voting with their feet. Goldman Sachs, JP Morgan, Morgan Stanley and Citigroup have moved nearly $300bn of balance-sheet assets from London to Frankfurt, and Barclays has won approval to move another $215bn to Dublin. BNP Paribas, Cri(C)dit Agricole, and Socii(C)ti(C) Gi(C)ni(C)ral have transferred 500 staff from London to Paris. HSBC has shifted ownership of many of its European subsidiaries from the UK to France.

Related: How can we tax the footloose multinationals?

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