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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

#61

Post by thebooktocome »

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.

Yeah! English passports will be blue again, like God intended.

Re: $1T is leaving Britain because of Brexit

#62

Post by growlist »

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…

This is just such complete and utter nonsense it's hard to know where to start. Are you honestly suggesting that good opportunities to make money by lending to British businesses/consumers are not going to be taken advantage of due to this money going to the EU?! Last time I checked banking was global.

Re: $1T is leaving Britain because of Brexit

#63

Post by tehbeard »

marliechiller wrote: post #36
arethuza wrote: post #17

Earlier quoted context omitted.

"real estate will become a little more affordable" For many people in the UK any decrease in house prices is regarded as a very bad thing indeed.

"real estate will become a little more affordable" For many people in the UK any decrease in house prices is regarded as a very good thing indeed. (perhaps i'd be able to finally afford a property!)

If you can get a mortgage when the dust settles, and those holding the property decide to cut their losses rather than cling to it for dear life until it "bounces back".

Re: $1T is leaving Britain because of Brexit

#64

Post by namdnay »

lazyjones wrote: post #54
lhopki01 wrote: post #23

Earlier quoted context omitted.

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.

> May wants to stay in the single market, the EU is refusing that option

If you can't have your cake and eat it too, it's not the baker's fault...

Re: $1T is leaving Britain because of Brexit

#65

Post by pjc50 »

lazyjones wrote: post #54
lhopki01 wrote: post #23

Earlier quoted context omitted.

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.

Single market access is conditional on accepting freedom of movement, it's not a gratuitous refusal.

Re: $1T is leaving Britain because of Brexit

#66

Post by tlarkworthy »

vmarsy wrote: post #49
hkt wrote: post #31

Earlier quoted context omitted.

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 this is like Arbitration in the US? In the UK, how are they "known to be free of political interference etc."? Is it easy for people to contest a decision that looks unfair and bring it to the regular courts ?

Yes since the Magna Carta of 1215

Re: $1T is leaving Britain because of Brexit

#67

Post by jcfrei »

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…

Assuming this money was actively managed then you can use a ballpark measure of 1% that asset managers collected in management fees per year (ie. ~$10 billion) . That income is now earned outside the UK.

Re: $1T is leaving Britain because of Brexit

#68

Post by pseudolus »

sabertoothed wrote: post #15
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…

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

English law (technically the laws of England and Wales) are not "really, really good". English law is incorporated in contracts because of ubiquity. Over the years, and for historical reasons, English contract law has become a lingua franca (mirroring the English language) in international commerce - just as likely to be understood by a company in France as by a company in China. There's nothing inherently superior to English contract law versus that of other jurisdictions. In the US a similar phenomenon exists relative to corporate law - among the reasons Delaware is such a popular incorporation jurisdiction is that nationwide in each state the corporate law of Delaware is understood. In fact, in certain "national" law schools it's the only corporate law taught.

Re: $1T is leaving Britain because of Brexit

#69

Post by dep_b »

Zigurd wrote: post #22

This is 21st c. social media-based warfare. Damaging the West with brexit and right wing nationalists is as strategically effective as a victory in a shooting war.

> Damaging the West with [...] right wing nationalists

Ya if only we were as open minded as China and Russia we would win this war.

Re: $1T is leaving Britain because of Brexit

#70

Post by lazyjones »

gumby wrote: post #41
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. Norway and Switzerland are subject to almost all the EU regulations but unlike the UK have no say, much less veto, in the making or enforcement of those rules. Is that situation really what Brexiteers wanted?

These rules are subject to local legislation. Switzerland and Norway can renegotiate any time they want and occasionally do so.

https://www.dw.com/en/switzerland-ignores-eu-deadline-for-tr...

This is a much stronger position to be in and the UK is a much larger "adversary" in tough negotiations (and has always been even within the EU).

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