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If you think the full on collapse of the UK banking system, and the mass exodus of financial jobs isn't going to instantly dry up any startup funding in the UK,

If you think the full on collapse of the UK banking system, and the mass exodus of financial jobs isn't going to instantly dry up any startup funding in the UK, you're kidding yourself. Large companies in the UK are already announcing their intention to move thousands of jobs to Germany or Ireland.

dr_ick 10y ago
> full on collapse of the UK banking system Hyperbole much? Stop with the fear mongering. Also, which "large companies" have announced they are moving? Source?
- illumin8 10y ago
  http://www.bbc.com/news/business-36623723 http://www.bbc.com/news/business-36623723 "American banks JP Morgan and Morgan Stanley are able to sell to the rest of Europe from London under special "passporting" arrangements. Even before the negotiations with the EU begin, both have said they may need to move staff to the EU to serve their European customers. JP Morgan alone has warned up to 4,000 jobs could leave the UK. Airbus employs 15,000 people in the UK and chief executive Tom Enders said. "This is a lose-lose result for both Britain and Europe. We will review our UK investment strategy, like everybody else will."
  - dr_ick 10y ago
    So no companies have announced they are moving. They are evaluating the situation, as any responsible corporation should. The UK banking system is not about to collapse.
    - justin66 10y ago
      London will give up its position as "world financial capital," I would think. That always seemed a bit odd, and now that they're losing one of their main advantages...
      - deleted 10y ago
        [deleted]
      - ommunist 10y ago
        They are gaining one! Swiss banking privacy rules down under EU pressure. The UK now have freedom to keep large money more private than Swiss can do from now.
        ori_b 10y ago
        Switzerland is not part of the EU. Why do you think that the UK have more freedom in this case?
        ommunist 10y ago
        Switzerland already bent its traditional legislation to comply with new EU ruling about banks secrets snd reporting. The UK banking just got its chance.
        riffraff 10y ago
        Switzerland did that because the alternative was, concretely, losing the ability to keep foreign customers, so they chose the lesser evil. Why do you think it would be different for the UK?
        justin66 10y ago
        That's exactly opposite of what the United States has been pushing for the last couple of decades in terms of banking secrecy, pretty successfully. The U.K. could alienate the US government right now, but I bet they won't.
    - joeyspn 10y ago
      > The UK banking system is not about to collapse. Santander -20%. Lloyds -21%. Barclays -18%... etc Nothing to see here, everything is ok...
  - protomyth 10y ago
    no horse in this race, but here is the JP Morgan statement to its staff: http://www.businessinsider.com/jpmorgan-internal-staff-memo-from-jamie-dimon-and-others-about-brexit-referendum-vote-2016-6?r=UK&IR=T http://www.businessinsider.com/jpmorgan-internal-staff-memo-...
- illumin8 10y ago
  Regarding the banking system in the UK: http://www.bbc.com/news/business-36617969 http://www.bbc.com/news/business-36617969 "UK banking stocks have plunged after Britain voted to leave the EU. Barclays and RBS were among the hardest hit, with their shares sliding nearly 30% at the start of trading before staging a partial recovery. Meanwhile, Morgan Stanley could relocate up to 2,000 London-based investment banking staff, the BBC understands. This could add to fears about potential job losses in the UK financial industry, which employs 2.2m people. Shares in the FTSE 100's five big banks fell 21% on average as markets digested the results of the referendum, with Barclays suffering the biggest one-day fall in its share price. The price eventually recovered to stand 16% down in late afternoon trading. Shares in Europe's other main banks fell heavily, with Germany's Deutsche Bank down more than 13% and France's Societe Generale more than 20% lower. "The UK and European banking system has been hit particularly hard as there was already fears about their health, and now there are worries about the linkages between European and British banks," said Michael Hewson, chief market analyst at CMC Markets."
- IkmoIkmo 10y ago
  London was the de facto capital (as in, economic powerhouse) of the EU, where you'd create your EU headquarters for its connection to the EU, its most talented individuals, its market, and to some extent its political connections. This will no longer be true. No longer will you have automatic access to the rest of the market, no longer can talent so easily flow, no longer does the UK hold a 10% vote in the EU, no longer will it carry the image of being the capital of the EU by definition of it being outside of the EU. Many of the incentives to incorporate in London will shift to other destinations. And that'll surely have repercussions, I won't use terms like full on collapse or anything like it, but I expect consequences will be quite substantial.
  - illumin8 10y ago
    Thanks for clarifying it in a way that's perhaps a little less hyperbolic than my "full on collapse." I think it's important to understand the passporting agreements between banks in the UK that allowed them to essentially act as if they were banks in the EU created a ton of prosperity over the last several decades (2.1 million jobs in finance alone in the UK). This industry is going to take a huge hit, and frankly, even if you don't work in finance, you should care because it will impact everyone in the country.
jhou2 10y ago
To some extent, I think this is what Brexit supporters want. With fewer jobs in London and rest of UK, and more border controls, the attraction of the UK for migrants decreases significantly. The ultra heated real estate market can finally cool down a bit.
- illumin8 10y ago
  Everyone wants a less heated real estate market - ask California - until they realize that cold real estate markets indicate a lack of jobs and economic hardship.
  - gammarator 10y ago
    London (and Vancouver) real estate is being driven by rich overseas buyers, though--it's disconnected from the strength of the local economy, except insofar as those places are believed to represent a safe store of value. How can a regional economy be stable if the median worker can't afford housing?
- henrikschroder 10y ago
  Yeah, look at Detroit, that's a great example of what a cooled down economy and real estate market looks like...

dr_ick 10y ago

> full on collapse of the UK banking system Hyperbole much? Stop with the fear mongering. Also, which "large companies" have announced they are moving? Source?

illumin8 10y ago
http://www.bbc.com/news/business-36623723 http://www.bbc.com/news/business-36623723 "American banks JP Morgan and Morgan Stanley are able to sell to the rest of Europe from London under special "passporting" arrangements. Even before the negotiations with the EU begin, both have said they may need to move staff to the EU to serve their European customers. JP Morgan alone has warned up to 4,000 jobs could leave the UK. Airbus employs 15,000 people in the UK and chief executive Tom Enders said. "This is a lose-lose result for both Britain and Europe. We will review our UK investment strategy, like everybody else will."
- dr_ick 10y ago
  So no companies have announced they are moving. They are evaluating the situation, as any responsible corporation should. The UK banking system is not about to collapse.
  - justin66 10y ago
    London will give up its position as "world financial capital," I would think. That always seemed a bit odd, and now that they're losing one of their main advantages...
    - deleted 10y ago
      [deleted]
    - ommunist 10y ago
      They are gaining one! Swiss banking privacy rules down under EU pressure. The UK now have freedom to keep large money more private than Swiss can do from now.
      - ori_b 10y ago
        Switzerland is not part of the EU. Why do you think that the UK have more freedom in this case?
        ommunist 10y ago
        Switzerland already bent its traditional legislation to comply with new EU ruling about banks secrets snd reporting. The UK banking just got its chance.
        riffraff 10y ago
        Switzerland did that because the alternative was, concretely, losing the ability to keep foreign customers, so they chose the lesser evil. Why do you think it would be different for the UK?
      - justin66 10y ago
        That's exactly opposite of what the United States has been pushing for the last couple of decades in terms of banking secrecy, pretty successfully. The U.K. could alienate the US government right now, but I bet they won't.
  - joeyspn 10y ago
    > The UK banking system is not about to collapse. Santander -20%. Lloyds -21%. Barclays -18%... etc Nothing to see here, everything is ok...
- protomyth 10y ago
  no horse in this race, but here is the JP Morgan statement to its staff: http://www.businessinsider.com/jpmorgan-internal-staff-memo-from-jamie-dimon-and-others-about-brexit-referendum-vote-2016-6?r=UK&IR=T http://www.businessinsider.com/jpmorgan-internal-staff-memo-...
illumin8 10y ago
Regarding the banking system in the UK: http://www.bbc.com/news/business-36617969 http://www.bbc.com/news/business-36617969 "UK banking stocks have plunged after Britain voted to leave the EU. Barclays and RBS were among the hardest hit, with their shares sliding nearly 30% at the start of trading before staging a partial recovery. Meanwhile, Morgan Stanley could relocate up to 2,000 London-based investment banking staff, the BBC understands. This could add to fears about potential job losses in the UK financial industry, which employs 2.2m people. Shares in the FTSE 100's five big banks fell 21% on average as markets digested the results of the referendum, with Barclays suffering the biggest one-day fall in its share price. The price eventually recovered to stand 16% down in late afternoon trading. Shares in Europe's other main banks fell heavily, with Germany's Deutsche Bank down more than 13% and France's Societe Generale more than 20% lower. "The UK and European banking system has been hit particularly hard as there was already fears about their health, and now there are worries about the linkages between European and British banks," said Michael Hewson, chief market analyst at CMC Markets."
IkmoIkmo 10y ago
London was the de facto capital (as in, economic powerhouse) of the EU, where you'd create your EU headquarters for its connection to the EU, its most talented individuals, its market, and to some extent its political connections. This will no longer be true. No longer will you have automatic access to the rest of the market, no longer can talent so easily flow, no longer does the UK hold a 10% vote in the EU, no longer will it carry the image of being the capital of the EU by definition of it being outside of the EU. Many of the incentives to incorporate in London will shift to other destinations. And that'll surely have repercussions, I won't use terms like full on collapse or anything like it, but I expect consequences will be quite substantial.
- illumin8 10y ago
  Thanks for clarifying it in a way that's perhaps a little less hyperbolic than my "full on collapse." I think it's important to understand the passporting agreements between banks in the UK that allowed them to essentially act as if they were banks in the EU created a ton of prosperity over the last several decades (2.1 million jobs in finance alone in the UK). This industry is going to take a huge hit, and frankly, even if you don't work in finance, you should care because it will impact everyone in the country.

jhou2 10y ago

To some extent, I think this is what Brexit supporters want. With fewer jobs in London and rest of UK, and more border controls, the attraction of the UK for migrants decreases significantly. The ultra heated real estate market can finally cool down a bit.

illumin8 10y ago
Everyone wants a less heated real estate market - ask California - until they realize that cold real estate markets indicate a lack of jobs and economic hardship.
- gammarator 10y ago
  London (and Vancouver) real estate is being driven by rich overseas buyers, though--it's disconnected from the strength of the local economy, except insofar as those places are believed to represent a safe store of value. How can a regional economy be stable if the median worker can't afford housing?
henrikschroder 10y ago
Yeah, look at Detroit, that's a great example of what a cooled down economy and real estate market looks like...