6 ms·

The "globally influential" and London being a top financial center will certainly decrease after Brexit. You'll see a lot of EU banking moving from London to Be

The "globally influential" and London being a top financial center will certainly decrease after Brexit. You'll see a lot of EU banking moving from London to Berlin or possibly Paris.

gumby 6y ago
I think Brexit is disastrous nonsense, but I wonder how much of this will happen. That was the prediction/hope for the Euro yet the majority of trading happened in London outside the Euro zone. They will be outside the portability regime though, so some trading will of necessity be moving.
brummm 6y ago
Banking would move to Frankfurt in Germany, not Berlin.
- walshemj 6y ago
  After the recent wirecard fiasco Frankfurt is not going to very popular for that.
  - dathinab 6y ago
    Why not, it's like saying after Facebooks privacy scandal silicon valley became less popular for other companies. (Yes SV became less popular in recent year, but because of other reasons).
    - walshemj 6y ago
      It was the regulators actions I was thinking of - going after FT Journalists etc. Its about the credibility of the financial system. Some of the senior people at BAFIN should have resigned by now
andylynch 6y ago
It’s going to Frankfurt and Amsterdam (plus a bit to Dublin)
- wolfgke 6y ago
  ... and Paris.
  - panzagl 6y ago
    So the financial center is moving to... 4 places? I know nothing about banking, but that's generally not how centers work.
    - p_l 6y ago
      All of those cities are competing to replace London, how it shakes down in long term we will have to see yet. Frankfurt has the draw as already established major centre, but Amsterdam, Dublin and Paris all got things going for them.
PuffinBlue 6y ago
This fundamentally misunderstands why finance is there in the first place. It's not just about access to the euro zone, it's about hiding all that juicy money from [insert national/international authority]. The City is a weird place, not quite governed by the laws of the land as you think it might, and has repeatedly reinvented itself for over 1000 years to remain a pinnacle of 'success' in murky dealings. With that handy set of overseas dependencies to hide stuff in, The City will do just fine after Brexit.
drumhead 6y ago
They said that the City would be finished if the UK didnt join the Euro, it never happened and the city actually became more powerful. Recreating a global financial centre like the the City isnt a matter of just moving to another location in Europe. If it were that easy the Eurozone would have done it years ago. London has the infrastructure, contacts, mentality, depth of knowledge and experience that the other capitals in the EU cant match. And why would they want to, the city is happy to do business with them. Why would the EU want to wreck a European financial centre that provides them with so many benefits?
- JustARandomGuy 6y ago
  Finance will move from London for the same reason that British Airways now claims that it's a Spanish company: https://www.theguardian.com/business/2018/nov/12/ba-spain-no-deal-brexit-iag-eu https://www.theguardian.com/business/2018/nov/12/ba-spain-no... - laws can be a massive pain in the ass especially for something as highly regulated as banking or flying. It's way easier to bank within the same regulatory atmosphere than outside it. It may take some time thanks to the corona but it will happen.
HacklesRaised 6y ago
Frankfurt.

The "globally influential" and London being a top financial center will certainly decrease after Brexit. You'll see a lot of EU banking moving from London to Berlin or possibly Paris.

gumby 6y ago

I think Brexit is disastrous nonsense, but I wonder how much of this will happen. That was the prediction/hope for the Euro yet the majority of trading happened in London outside the Euro zone. They will be outside the portability regime though, so some trading will of necessity be moving.

brummm 6y ago

Banking would move to Frankfurt in Germany, not Berlin.

walshemj 6y ago
After the recent wirecard fiasco Frankfurt is not going to very popular for that.
- dathinab 6y ago
  Why not, it's like saying after Facebooks privacy scandal silicon valley became less popular for other companies. (Yes SV became less popular in recent year, but because of other reasons).
  - walshemj 6y ago
    It was the regulators actions I was thinking of - going after FT Journalists etc. Its about the credibility of the financial system. Some of the senior people at BAFIN should have resigned by now

andylynch 6y ago

It’s going to Frankfurt and Amsterdam (plus a bit to Dublin)

wolfgke 6y ago
... and Paris.
- panzagl 6y ago
  So the financial center is moving to... 4 places? I know nothing about banking, but that's generally not how centers work.
  - p_l 6y ago
    All of those cities are competing to replace London, how it shakes down in long term we will have to see yet. Frankfurt has the draw as already established major centre, but Amsterdam, Dublin and Paris all got things going for them.

PuffinBlue 6y ago

This fundamentally misunderstands why finance is there in the first place. It's not just about access to the euro zone, it's about hiding all that juicy money from [insert national/international authority]. The City is a weird place, not quite governed by the laws of the land as you think it might, and has repeatedly reinvented itself for over 1000 years to remain a pinnacle of 'success' in murky dealings. With that handy set of overseas dependencies to hide stuff in, The City will do just fine after Brexit.

drumhead 6y ago

They said that the City would be finished if the UK didnt join the Euro, it never happened and the city actually became more powerful. Recreating a global financial centre like the the City isnt a matter of just moving to another location in Europe. If it were that easy the Eurozone would have done it years ago. London has the infrastructure, contacts, mentality, depth of knowledge and experience that the other capitals in the EU cant match. And why would they want to, the city is happy to do business with them. Why would the EU want to wreck a European financial centre that provides them with so many benefits?

JustARandomGuy 6y ago
Finance will move from London for the same reason that British Airways now claims that it's a Spanish company: https://www.theguardian.com/business/2018/nov/12/ba-spain-no-deal-brexit-iag-eu https://www.theguardian.com/business/2018/nov/12/ba-spain-no... - laws can be a massive pain in the ass especially for something as highly regulated as banking or flying. It's way easier to bank within the same regulatory atmosphere than outside it. It may take some time thanks to the corona but it will happen.

HacklesRaised 6y ago

Frankfurt.