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$1T is leaving Britain because of Brexit

cnn.com

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Re: $1T is leaving Britain because of Brexit

#51

Post by growlist »

myrandomcomment wrote: post #5

No surprise. Passporting (allow banks to operate in all members of the EU if they are licensed in one member) is a key to all of the banks operations. Every bank based in London for that purpose now has to open a regulated branch in an EU member. The next thing to kill the market in London will be the movement of Euro clearing to an EU member. Brexit is a self inflicted shot to the head. The number of people that sup…

And property prices in London/South East become affordable again, Sterling falls benefiting inward investment, exports, and tourism. So not all bad news then! :)

There's so much defeatism within the UK and anti-Brexit propaganda flying around from vested interests. It's all so tiresome.

> Brexit is a self inflicted shot to the head.

Money isn't the only thing in life.

Re: $1T is leaving Britain because of Brexit

#52

Post by cm2187 »

ryan_j_naughton wrote: post #44
GreaterFool wrote: post #10

> have shifted at least £800 billion ($1 trillion) worth of assets out of the country And what's the significance of that? Suppose I had $100 in a bank in UK and I moved it to a bank in Germany. Neither country is better or worse because of that. The article doesn't bother to explain the ramifications. Deals are made in UK because English law is really, really good. Having to maintain offices in EU will surely increa…

Your seriously misunderstand the banking sector's very real impacts on everyday lives. Having more assets under management is very impactful because money doesn't just sit in a bank -- it is used again for other things. Thus, there would be less money for loans and other investments. If you're trying to get a mortgage or start a business, that's very impactful. If you are a construction worker and financing for new c…

What is moving to the EU is EU-based activities, i.e. loans/deposits to/from EU customers, derivatives or repos with EU customers, etc.

For loans and deposits, there were likely to be already booked in EU branches already rather than London. These branches are merely being moved to a EU subsidiary. For derivatives, repos and other, these are not really typically funding any activity in the UK.

In any case it is unlikely to have any impact on lending in the UK. What it will have an impact on is where the banks are making their money, i.e. more EU business will be taxed in the EU (keeping in mind that EU business already done out of a EU branch of a London bank was already taxed in the EU).

Re: $1T is leaving Britain because of Brexit

#53

Post by flexie »

hkt wrote: post #31
sabertoothed wrote: post #15

Earlier quoted context omitted.

> Deals are made in UK because English law is really, really good. Can you elaborate?

We have reliable courts which are known for their independence. We also have alternatives to courts - called Alternative Dispute Resolution mechanisms - which operate out of London mostly, and are known to be free of political interference etc. See http://www.lcia.org/ for an example. You'd write an ADR into a contract and use these people if you didn't want to use our courts. And our courts respect this arrangement…

So do virtually all other Northern and Western European countries.

What you have that they don't have is the English language as the native language. Non UK lawyers (as me) chose to UK arbitration etc. because of the language, not because we trust your courts more than the German, French or Dutch courts.

Yes, arbitration and other alternative dispute resolution mechanisms in most other countries could be conducted in English, but with UK arbitration we know that we would be able to read the statutes, court rulings etc that the arbitrators read and refer to, in the same language as them.

Re: $1T is leaving Britain because of Brexit

#54

Post by lazyjones »

lhopki01 wrote: post #23
lazyjones wrote: post #14

Earlier quoted context omitted.

> Every bank based in London for that purpose now has to open a regulated branch in an EU member. How many of them don't have one yet? Also, every bank based in the EU will have to open a regulated branch in UK in order to operate in this large market. > The number of people that supported leave and lacked understanding of all the ties of the businesses that operate in the UK but sell in the EU was amazing. Perhaps t…

Norway is a member of the single market via the EEA and Switzerland essentially is because of it's bilateral treaties. The UK is proposing to leave the single market (in the best case)

> The UK is proposing to leave the single market (in the best case)

No, May wants to stay in the single market, the EU is refusing that option.

https://www.independent.co.uk/news/uk/politics/single-market...

This stubbornness on behalf of the EU will damage both sides economically and thus be corrected at some point when the current EU administration is replaced by a more reasonable one.

Re: $1T is leaving Britain because of Brexit

#56

Post by Loughla »

growlist wrote: post #51
myrandomcomment wrote: post #5

No surprise. Passporting (allow banks to operate in all members of the EU if they are licensed in one member) is a key to all of the banks operations. Every bank based in London for that purpose now has to open a regulated branch in an EU member. The next thing to kill the market in London will be the movement of Euro clearing to an EU member. Brexit is a self inflicted shot to the head. The number of people that sup…

And property prices in London/South East become affordable again, Sterling falls benefiting inward investment, exports, and tourism. So not all bad news then! :) There's so much defeatism within the UK and anti-Brexit propaganda flying around from vested interests. It's all so tiresome. > Brexit is a self inflicted shot to the head. Money isn't the only thing in life.

>Money isn't the only thing in life.

Disclaimer - I'm not trying to be hateful.

That seems like a completely nonsense, garbage statement. Brexit is primarily about money and economics, from what I can tell on the outside looking in.

So what was your purpose in writing that?

Re: $1T is leaving Britain because of Brexit

#57

Post by namdnay »

SmellyGeekBoy wrote: post #21
lazyjones wrote: post #14

Earlier quoted context omitted.

> Every bank based in London for that purpose now has to open a regulated branch in an EU member. How many of them don't have one yet? Also, every bank based in the EU will have to open a regulated branch in UK in order to operate in this large market. > The number of people that supported leave and lacked understanding of all the ties of the businesses that operate in the UK but sell in the EU was amazing. Perhaps t…

The UK is the 5th biggest economy in the world. Switzerland is 20th and Norway 30th. The UK has traditionally punched well above its weight economically, it will be interesting to see if we become just another Switzerland or Norway after Brexit rather than the world economic power that we are today. Being the banking capital of the EU is a huge contributing factor to that position, btw.

+ Norway and Switzerland both have partly artificial economies, buoyed by Oil for the former and dirty money for the latter.

Re: $1T is leaving Britain because of Brexit

#58

Post by muro »

matthewmacleod wrote: post #34
lazyjones wrote: post #14

Earlier quoted context omitted.

> Every bank based in London for that purpose now has to open a regulated branch in an EU member. How many of them don't have one yet? Also, every bank based in the EU will have to open a regulated branch in UK in order to operate in this large market. > The number of people that supported leave and lacked understanding of all the ties of the businesses that operate in the UK but sell in the EU was amazing. Perhaps t…

Perhaps they're just not trying to see only the drawbacks and ignore successful non-members in Europe like Switzerland and Norway. That's a bit of a misrepresentation, because those "successful non-members" are members of the single market, which is currently something that the UK is actively trying to leave. Don't underestimate what's happening here – it would have been possible to execute Brexit in a relatively con…

Switzerland is part of Schengen (which UK is not), yet not a member of the single market - they are not in the EU for customs purposes, have many restrictions on imports (e.g. food).

Re: $1T is leaving Britain because of Brexit

#59

Post by benj111 »

flexie wrote: post #39
GreaterFool wrote: post #10

> have shifted at least £800 billion ($1 trillion) worth of assets out of the country And what's the significance of that? Suppose I had $100 in a bank in UK and I moved it to a bank in Germany. Neither country is better or worse because of that. The article doesn't bother to explain the ramifications. Deals are made in UK because English law is really, really good. Having to maintain offices in EU will surely increa…

When it comes to financial legislation applying to banking, to securities trade etc., English law is largely whatever EU law says it is (it's regulated by the EU). It still remains to be seen what English law will be after Brexit. As for rule of law in general, it's debatable whether its better in the UK than in the other Western or Northern European nations.

"English law is largely whatever EU law says it is (it's regulated by the EU)."

Aha, but as the major financial services industry player, we actually had a seat at the table, and could actually influence those laws.

Now we may have to follow rules we have no say in, or something.... Only 3 months away, no rush.

Re: $1T is leaving Britain because of Brexit

#60

Post by lazyjones »

matthewmacleod wrote: post #34
lazyjones wrote: post #14

Earlier quoted context omitted.

> Every bank based in London for that purpose now has to open a regulated branch in an EU member. How many of them don't have one yet? Also, every bank based in the EU will have to open a regulated branch in UK in order to operate in this large market. > The number of people that supported leave and lacked understanding of all the ties of the businesses that operate in the UK but sell in the EU was amazing. Perhaps t…

Perhaps they're just not trying to see only the drawbacks and ignore successful non-members in Europe like Switzerland and Norway. That's a bit of a misrepresentation, because those "successful non-members" are members of the single market, which is currently something that the UK is actively trying to leave. Don't underestimate what's happening here – it would have been possible to execute Brexit in a relatively con…

> That's a bit of a misrepresentation, because those "successful non-members" are members of the single market, which is currently something that the UK is actively trying to leave.

The UK is trying to leave the EU and stay in the single market. The EU is trying to deny the UK access to the single market.

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