Brexit’s Big Winner? It Could Be New York City

Many in the London banking industry are asserting that the city’s financial operations could relocate to New York City once Prime Minister Theresa May initiates Brexit. Banking is crucial to the British economy and accounts for up to 10 percent of national GDP, reports David Francis for Foreign Policy. He lists reasons for relocating. London bankers had opposed Brexit and can’t help but wonder what other protectionist trends and uncertainties are in store. For many banks, London and New York are their largest or second largest offices, and transfer of operations could be smooth. Another reason banks eye moving across the Atlantic instead of the English Channel is the EU’s reputation for bureaucracy with concerns about efficiency an regulations as well as Wall Street's ability to manage the world’s 17 major currencies. Analysts anticipate that EU members want to cut off British access to the European Common Market and related benefits. To be sure, such a transcontinental move is not a done deal. As the bankers wait for May to trigger the process and an official EU response, they monitor the negotiations for tone and orderliness. – YaleGlobal

Brexit’s Big Winner? It Could Be New York City

Consequences for both Britain and the EU emerge as London’s powerhouse banking industry ponders moving to the US instead
David Francis
Friday, October 21, 2016

David Francis is a staff writer for Foreign Policy, where he oversees FP’s breaking news blog, The Cable.

Copyright Clearance Center (CCC) is FP’s exclusive agent for granting reprint and reuse permissions.

Add new comment

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.
This question is for testing whether or not you are a human visitor and to prevent automated spam submissions.