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The Financial Effects of Brexit and What London Bankers Believe the City's Future Entails
The Brexit debate has been one o...
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The financial effects of brexit and what london bankers believe the city's future entails

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Exploring the effects of Brexit, and what it means for the financial world at large. Including the immediate impact to Britain, but also the larger global impact that we can expect as these policies are put into action.

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The financial effects of brexit and what london bankers believe the city's future entails

  1. 1. The Financial Effects of Brexit and What London Bankers Believe the City's Future Entails The Brexit debate has been one of the most controversial topics of 2016. The word is a portmanteau of two other words: Britain and exit, and it refers to the referendum that asks whether or not the United Kingdom should remain with the European Union. The subject has resulted in heated arguments from both sides. Those who are for the leaving motion have framed the argument that leaving the European Union is a necessity in preserving the country's identity. They believe that staying with the Union may result in further loss of culture and independence, and many voters have expressed anti-immigration sentiments as a major part of their argument. Those who vote to remain, however, typically argue that staying with the Union is a better way to preserve the British economy. These voters also believe that the concerns regarding immigration are not critical enough to rule out the economic consequences that would come with leaving. However, recent reports show that many bankers believe that the exit from the European Union may not be as consequential to the role of the country's capital. According to the consulting firm Synechron Inc, many U.K. bankers have commented that they believe London will be staying Europe’s financial center, even after the conclusion of Brexit. Approximately 72 percent of those taking the survey agreed that the city would retain its role in the future for at least another five years. The survey took into account the educated opinions of 80 financial-services professionals that worked in the capital markets around the district. However, 78 percent had also said that Brexit may have a long-term negative impact on financial markets in the country, though 82 percent agreed that the European Union would be hurt as well. In the wake of the recent Brexit results, bank executives are now bracing for a potential loss when it comes to their right to freely sell services for different countries in the EU from London. Many are also planning to start moving their jobs and financial operations out of the country to deal with the withdrawal. Many companies are also concerned that the Prime Minister of the UK, Theresa May, could begin to prioritize immigration over other needs in regards to London and EU counterparts. To deal with the vastly changing landscape, many banks are also no longer waiting for local government officials, instead choosing to set up committees in order to plan for a financial future outside of the European Union. Currently, the short-term consequences of the Brexit referendum have been severe, but many experts also believe that future financial disaster does not have to be inevitable. Though stock markets all over the world have hit snags from the decision, many in the country have faith that financial directors will focus on getting the economy back on its feet, focusing on a more long-term solution to Independence from the European Union. Many are optimistic about the future, but the effects of the country's exit are still developing, even today.

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