This article is from the source 'rtcom' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at https://www.rt.com/business/348149-bank-analysts-reaction-brexit/
The article has changed 2 times. There is an RSS feed of changes available.
Previous version
1
Next version
Version 0 | Version 1 |
---|---|
Banks divided over London exodus after Brexit | Banks divided over London exodus after Brexit |
(about 5 hours later) | |
As Britain voted to leave the EU, the future of its financial services industry is now uncertain. Some analysts say financiers won’t flee the country, but others are preparing for exodus. | As Britain voted to leave the EU, the future of its financial services industry is now uncertain. Some analysts say financiers won’t flee the country, but others are preparing for exodus. |
"There will be no mass exit of banks and financial institutions from the Square Mile," Mark Boleat, policy chairman for the City of London Corporation, told Reuters. | "There will be no mass exit of banks and financial institutions from the Square Mile," Mark Boleat, policy chairman for the City of London Corporation, told Reuters. |
"The general view of the City is that the government should push for the UK to retain our access to the single market," Boleat added. | "The general view of the City is that the government should push for the UK to retain our access to the single market," Boleat added. |
READ MORE: Global stocks plunge as UK votes for Brexit, Cameron to resign | READ MORE: Global stocks plunge as UK votes for Brexit, Cameron to resign |
Morgan Stanley was reported to have started a process to relocate 2,000 key investment banking staff from London to either Dublin or Frankfurt. The bank has denied the information. | |
JPMorgan CEO Jamie Dimon said the bank would have no choice but to overhaul its UK business model, which employs 16,000 people. | JPMorgan CEO Jamie Dimon said the bank would have no choice but to overhaul its UK business model, which employs 16,000 people. |
US banks have told their employees to focus on clients rather than speculate on Brexit. | US banks have told their employees to focus on clients rather than speculate on Brexit. |
"I've convened a big team meeting at 0800 GMT as the juniors are freaking out. I will tell them to focus on their job and wait for the volatility to pass, but the reality is much, much starker, we'll have a crash and big layoffs," a senior investment banker at a US bank told Reuters. | "I've convened a big team meeting at 0800 GMT as the juniors are freaking out. I will tell them to focus on their job and wait for the volatility to pass, but the reality is much, much starker, we'll have a crash and big layoffs," a senior investment banker at a US bank told Reuters. |
Many investors are likely to lose, James Butterfill, head of research and investments at ETF Securities, told Bloomberg. | Many investors are likely to lose, James Butterfill, head of research and investments at ETF Securities, told Bloomberg. |
“It’s scary, and I’ve never seen anything like it. We’re going to see outflows from basically any kind of cyclical asset. A lot of people were caught out, and many investors will lose a lot of money,” he said. | “It’s scary, and I’ve never seen anything like it. We’re going to see outflows from basically any kind of cyclical asset. A lot of people were caught out, and many investors will lose a lot of money,” he said. |
While some investors will be scared by Britain's exit from the EU, others will be attracted by the devalued pound, which plummeted to a 31-year low soon after the vote, according to Colin McLean, Managing Director at SVM Asset Management. | While some investors will be scared by Britain's exit from the EU, others will be attracted by the devalued pound, which plummeted to a 31-year low soon after the vote, according to Colin McLean, Managing Director at SVM Asset Management. |
"Certainly, some international investors could find the UK less attractive, but history shows us others are positively attracted to economies that get a devaluation boost,” he added. | "Certainly, some international investors could find the UK less attractive, but history shows us others are positively attracted to economies that get a devaluation boost,” he added. |
Previous version
1
Next version