London: It’s a scary prospect for London. Some of the world’s biggest banking names queuing for the exit door. After HSBC and Standard Chartered, now a warning from Deutsche Bank.
Reuters banking correspondent Anjuli Davies says, “London has a huge financial industry. It employs 1.4 million people and contributes 27.5 billion pounds in tax every year, so the impact could be huge if we do see an exodus of banks.”
After HSBC and Standard Chartered, now Deutsche Bank has warned of shutting down operations in London
Deutsche Bank has almost 9,000 staff in Britain. They could be left behind or moving – if the bank takes some operations out of the country. Exactly what it says could happen if the UK leaves the EU.
HSBC has already said it’s thinking about moving. Standard Chartered shareholders have pressed its board to do the same.
Though those banks have another complaint too: that the UK bank tax is costing too much.
Standard Chartered’s bill this year is expected to hit half a billion dollars.
HSBC one and half billion.
The UK banking lobby, the BBA, says other banks are delaying investments until the EU question is settled.
Which prime minster, David Cameron, promises it will be in an in/out referendum by the end of 2017.
If that’s not too late for investor tastes.
Richard Hunter is from Hargreaves Lansdown.
“Focus is going inevitably to turn to a referendum so as we get to a stage where there’s potentially more uncertainty, I think what the markets would like to see is that referendum called as quickly as possible.”
Even the Bank of England has chipped into the debate.
Governor Mark Carney saying last week the government should provide more clarity on how it’ll proceed with a referendum.
Raoul Ruparel of the Open Europe think tank. “Once we have a clearer picture of the time line and Cameron’s approach, we will see some concern around investment, but I think as long as there is a strong support for staying in and a government which is in favour of reform and staying in as Cameron is now, investors will not be overly concerned.”
Reacting to the Deutsche warning, a spokesman for Cameron said he has a mandate to renegotiate with Europe – and intends to get on with it.
Ventuno/Reuters