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UK benefits mostly from the financial industry afaik. Does anyone really think that this sector will stay 100% in this situation? Bankers are already planning t

UK benefits mostly from the financial industry afaik. Does anyone really think that this sector will stay 100% in this situation? Bankers are already planning the migration to Frankfurt. This might as well lead to a spiral. We'll see. And yes, France is now a bigger economy than britain, and it's just been a few hours now.

bhouston 10y ago
What is the reason for moving banking to Frankfurt? Is there regulatory issues? People do not just moving businesses for purely political reasons, there has to be concrete economic reasons. I actually think that the UK may be less regulated than EU exchanges and that may stay in order to keep the UK more attractive. If you do not list any real economic reasons, I think this is just scare talk.
- jacquesm 10y ago
  > What is the reason for moving banking to Frankfurt? Stability plus the fact that Frankfurt is already a major financial hub, and that Germany is a major driver of the EU economy.
  - bhouston 10y ago
    The only thing that has changed as of this vote of the three things you listed is the "stability" aspect. Maybe that is sufficient to cause an exodus, but I am not sure.
    - jacquesm 10y ago
      The perception of London being the doorstep of the EU has just changed to London being outside of the EU, it would make zero sense for the EU financial center to be technically outside of it.
- Xylakant 10y ago
  > What is the reason for moving banking to Frankfurt? Is there regulatory issues? London is one of the biggest (or rather the biggest) hub for EUR-denominated trading and AFAIK they're only allowed to do so because they're EU member. There's also the practice called passporting: Bonds, Insurances etc that are regulated in one EU country are allowed to be sold in all EU countries. The UK had the most favorable regulations for those bonds, so a lot of them moved to London. Now that London might soon not be part of the EU any more, the banks at least need a residence in a EU member state. Some might consider to substantially reduce their London operations.
- unprepare 10y ago
  >Is there regulatory issues? lack of a free trade agreement with europe comes to mind.
- sveme 10y ago
  As another commenter already noted, the common market covers goods, people and services, including financial services. So in order to sell financial services, you need to be located in the EU. That just changed in the case of London, with obvious consequences: — Ben Thompson (@BBCBenThompson) June 24, 2016 Sources at Morgan Stanley tell BBC it's already begun process of moving 2,000 London based investment banking staff to Dublin or Frankfurt
- Bombthecat 10y ago
  I think in the same direction. Not much will change. Funny how the leave voters of fear and spite are now here talking about punishing the uk out of spite :)

bhouston 10y ago

What is the reason for moving banking to Frankfurt? Is there regulatory issues? People do not just moving businesses for purely political reasons, there has to be concrete economic reasons. I actually think that the UK may be less regulated than EU exchanges and that may stay in order to keep the UK more attractive. If you do not list any real economic reasons, I think this is just scare talk.

jacquesm 10y ago
> What is the reason for moving banking to Frankfurt? Stability plus the fact that Frankfurt is already a major financial hub, and that Germany is a major driver of the EU economy.
- bhouston 10y ago
  The only thing that has changed as of this vote of the three things you listed is the "stability" aspect. Maybe that is sufficient to cause an exodus, but I am not sure.
  - jacquesm 10y ago
    The perception of London being the doorstep of the EU has just changed to London being outside of the EU, it would make zero sense for the EU financial center to be technically outside of it.
Xylakant 10y ago
> What is the reason for moving banking to Frankfurt? Is there regulatory issues? London is one of the biggest (or rather the biggest) hub for EUR-denominated trading and AFAIK they're only allowed to do so because they're EU member. There's also the practice called passporting: Bonds, Insurances etc that are regulated in one EU country are allowed to be sold in all EU countries. The UK had the most favorable regulations for those bonds, so a lot of them moved to London. Now that London might soon not be part of the EU any more, the banks at least need a residence in a EU member state. Some might consider to substantially reduce their London operations.
unprepare 10y ago
>Is there regulatory issues? lack of a free trade agreement with europe comes to mind.
sveme 10y ago
As another commenter already noted, the common market covers goods, people and services, including financial services. So in order to sell financial services, you need to be located in the EU. That just changed in the case of London, with obvious consequences: — Ben Thompson (@BBCBenThompson) June 24, 2016 Sources at Morgan Stanley tell BBC it's already begun process of moving 2,000 London based investment banking staff to Dublin or Frankfurt
Bombthecat 10y ago
I think in the same direction. Not much will change. Funny how the leave voters of fear and spite are now here talking about punishing the uk out of spite :)