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For Wall Street Banks in London, It’s Moving Time
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For Wall Street Banks in London, It’s Moving Time

Amie Tsang and Matthew Goldstein
The New York Times, 2019
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Recommendation

Extrication can, by its nature, be a time-intensive, unreliable process, and Brexit is no exception. London-based global banks may be facing a hard or no-deal Brexit, meaning that UK-based businesses will revert to basic World Trade Organization rules when dealing with EU clients, making London a poor center of operations. A soft exit, allowing London-based firms to continue participation in the European Single Market might ease the transition. In this New York Times article, Amie Tsang and Matthew Goldstein describe the exodus as global banks prepare to leave London.

Summary

Member states of the European Union benefit from something known as “passporting” whereby firms based in any member state can provide services throughout the EU without special trade arrangements. When the UK leaves the EU, London-based firms will no longer be able to take advantage of EU passporting, a loss of privilege that PricewaterhouseCoopers estimates could hit financial firms with a yearly 60 billion euro [$67.23 billion] drop in productivity. Related uncertainties have created a flurry of paperwork as lawyers draw up contracts to cover the many forms Brexit might take. But another consequence of the UK’s...

About the Authors

Amie Tsang is a business reporter based in London. Matthew Goldstein reports on Wall Street from New York.

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