Föhrenbergkreis Finanzwirtschaft

Unkonventionelle Lösungen für eine zukunftsfähige Gesellschaft

Posts Tagged ‘City of London’

London’s Brexit Exodus Is More of a Trickle

Posted by hkarner - 23. Februar 2019

Date: 22-02-2019
Source: The Wall Street Journal

Mass departures from U.K.’s financial center so far haven’t happened

LONDON—A month before the U.K. is set to leave the European Union, a long-feared exodus of financiers from London hasn’t yet materialized.

Banks and asset managers have built up bases on the continent in recent years to ensure they can access the bloc after Britain’s departure. But, contrary to the widely held expectation that London would lose tens or even hundreds of thousands of jobs, there are few signs yet of a wholesale shift away from the U.K. capital.

Instead, financial firms are keeping a significant presence in London, citing the city’s global standing and well-developed financial ecosystem. For their EU operations, many are hiring locally or moving only a handful of London positions, firms and market observers say.

“Nobody is abandoning London,” said John Liver, partner at financial services firm EY. “Broadly, everybody still treats London as their global financial center in this timezone.” Den Rest des Beitrags lesen »

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The City resigns itself to limited access to the EU

Posted by hkarner - 21. Juli 2018

Date: 19-07-2018
Source: The Economist

Realism starts to sink in regarding post-Brexit opportunities for financial firms

FOR the City of London, the uncertainty around Brexit has been a quagmire. Its financial firms, deeply connected as they are to the rest of the European Union, have been forced into extensive contingency planning, including moving operations and staff, in order to be prepared for any possible Brexit scenario. The government’s white paper, published on July 12th, at last brought some clarity, representing Britain’s most detailed Brexit plan to date. But for some in the City, it also proved a bitter disappointment.

Passporting, which has allowed the City’s firms to trade across the EU without separate regulatory or capital requirements, is tied to membership of the single market, which was rejected early on by the British government. Since January 2017 the City has sought the next-best option, a deal based on “mutual recognition”, where Britain and the EU would recognise each other’s regulatory regimes and allow licence-free access in both directions. A detailed proposal was laid out last September by a group co-sponsored by TheCityUK, an industry body, and the City of London Corporation. Theresa May and her chancellor, Philip Hammond, said they would seek mutual recognition. Den Rest des Beitrags lesen »

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What Does the Brexit Deal Mean for The City of London and Wall Street Banks?

Posted by hkarner - 11. Dezember 2017

Date: 09-12-2017
Source: The Wall Street Journal

Bankers push for more clarity as the U.K. moves into the next phase of Brexit negotiations

The U.K. and the European Union Friday reached a deal on the opening terms in their Brexit negotiations. What does that mean for London’s finance industry?

Not a ton. “It doesn’t do anything concrete,” said Joe Cassidy, a partner at consultancy KPMG. “All this does is allows us to move onto the next stage of the discussion.”

But the next stage includes two important things for the City of London: First, an agreement on a transition period that would maintain regulatory certainty over several years as businesses adjust after Brexit, and second, a potential EU-U.K. free-trade agreement for financial services.

Transition Deal Den Rest des Beitrags lesen »

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Brexit Could Cost Banks €15 Billion

Posted by hkarner - 4. Juli 2017

Date: 03-07-2017
Source: The Wall Street Journal

Costs could weigh on bank profits for years and ultimately hit EU consumers

The City of London financial district,.

British banks will likely have to shift large chunks of their operations into the EU after the U.K. leaves the trade bloc.

LONDON—Banks in the U.K. could be on the hook for €15 billion in costs to relocate certain activities to Europe after Brexit, according to a study by a finance trade group—a tab that could weigh on bank profits for years and ultimately hit European Union consumers.

The Association for Financial Markets in Europe, which commissioned the review by the Boston Consulting Group, warned Monday that the cost of creating a subsidiary in the EU would have a “material impact” on banks’ bottom lines. These additional costs could be passed on to European customers, the industry group added.

British banks will likely have to shift large chunks of their operations into the EU after the U.K. leaves the trade bloc in order to continue servicing customers there. The U.K. is currently locked in negotiations with the EU to try to guarantee as much access to the EU as possible, while remaining outside the single market.

However, if a deal isn’t cut and the U.K.’s financial hub is frozen out of Europe, then more than €1 trillion of bank assets, including loans, securities and derivatives, may need to be rebooked into European subsidiaries, according to AFME. Den Rest des Beitrags lesen »

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U.K.’s Euro Clearing Business at Risk as ECB Requests More Powers

Posted by hkarner - 25. Juni 2017

With another stupid statement by Mr. Kern. Full Elder (= Vollholler) (hfk)

Date: 24-06-2017
Source: The Wall Street Journal

Brexit raises questions about whether big U.K.-based clearing houses should move elsewhere within the EU

A view of the City of London financial district. London-based clearinghouses clear around 90% of the euro-denominated interest rate swaps of euro area banks, and 40% of their euro-denominated credit default swaps, according to ECB estimates.

FRANKFURT—The European Central Bank lodged a formal request for greater powers to supervise euro-denominated clearing, stepping up a tug of war between European Union authorities and Britain over the future of the lucrative business line after Brexit.

Britain’s departure from the EU has rekindled a debate about whether big U.K.-based clearing houses should decamp within the bloc, given the importance of their activities for the stability of eurozone financial markets.

The ECB said on Friday it had lodged a request with EU authorities for changes to its statute that would allow it to exercise “a clear legal competence in the area of central clearing.” Den Rest des Beitrags lesen »

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Will London Survive Brexit?

Posted by hkarner - 26. April 2017

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Brexit: Securing a New English-speaking Union?

Posted by hkarner - 8. April 2017

Dank an H.F.!

03.04.2017 Author: F. William Engdahl, NEO

89653433It’s becoming clear that there is a far more ambitious strategy behind Great Britain’s exit from the European Union, the so-called Brexit. Far from a reluctant government led by Prime Minister Theresa May, forced to listen to the Vox Populi of the majority of voters in 2016 who voted to exit the European Union, signs emerge of a far more devious well-planned strategy at the highest levels of British power, including the House of Windsor and the powers of the formidable City of London financial institutions. Britain is ditching the EU as a failed option, and seems to be intent on building a new English-speaking Union together with the United States and with the nations of the Commonwealth–the former colonies of the British Empire prior to 1914.

The British have a long and varied history, emerging from their surprising defeat of the mighty Spanish Armada in 1588 to go on over the course of three centuries to become the most powerful empire on earth, until a Great Depression of 1873 followed by two devastating world wars in the 20th Century, forced her patriarchs to swallow hard and accept a junior partner role with the 1945 dominant power, the United States. Den Rest des Beitrags lesen »

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30.000 Banker in London müssen um ihre Jobs zittern

Posted by hkarner - 6. April 2017

Zahlreiche Auslands-Banker bitten wegen der Hängepartie um den EU-Austritt der Briten um eine Heimsendung in die EU. Jahrelang waren Banker-Talente vom Kontinent in die Gegenrichtung gezogen.

London könnte 10.000 Banken-Jobs und 20.000 Stellen im Bereich der Finanzdienstleistungen verlieren, während Kunden 1,8 Billionen Euro an Anlagewerten nach dem Brexit aus Großbritannien abziehen, schätzt der Thinktank Bruegel. PwC-Daten zufolge gibt es rund 45.000 EU-Bürger, die im Finanzdienstleistungssektor in London tätig sind. Und viele Banker sind ob der Situation verunsichert und gehen proaktiv vor. Weil sie nach Monaten des Wartens keine Lust mehr auf Spekulationen haben, ob ihr Job gestrichen oder verlegt wird, ergreifen einige der ausländischen Mitarbeiter der größten Banken in London selbst die Initiative: Sie bitten darum, wieder in ihre Heimatländer versetzt zu werden. Das erfuhr Bloomberg von Personen, die mit der Lage vertraut sind.

Freiwillige Rückkehr

Angestellte von Citigroup Inc., Goldman Sachs Group Inc. und HSBC Holdings Plc haben sich den Informationen zufolge freiwillig dazu bereiterklärt, in ihre Heimat innerhalb der Europäischen Union (EU) zurückzukehren, sollte ihr Arbeitgeber nach dem Brexit Mitarbeiter verlagern müssen. Bei Société Générale SA sind bereits mindestens zwei Händler in ihre Heimat nach Frankreich und Italien zurückgekehrt, heißt es aus den Kreisen. Dahinter stehe die Erwartung, dass die Bank damit beginnen werde, ihre in London arbeitenden Kollegen über den Kontinent hinweg umzuverteilen.  Den Rest des Beitrags lesen »

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No Quick Fix to City of London’s Brexit Conundrum

Posted by hkarner - 30. September 2016

Date: 29-09-2016
Source: The Wall Street Journal By SIMON NIXON

Some argue EU rules provide a way for London-based banks to keep their access
to Europe, but the reality is more complicated, Simon Nixon writes

The City of London generates an estimated £60 billion in U.K. tax revenues annually.

As the debate over how to carry out Brexit intensifies, the City of London finds itself in the firing line. To some hard-line Brexiters, repeated warnings from bankers about the costs of quitting the European single market and losing passporting rights—which allow U.K.-based firms to sell financial services anywhere in the European Union—smack of special pleading. Passporting is a red herring, they say, because the U.K. would qualify as an “equivalent” regulatory regime under EU rules, allowing most financial-services activity to carry on as before. City warnings of imminent doom often turn out to be wrong, not least over Brexit itself. The City will be fine because it is always fine.

The City, though, hasn’t always been the global financial hub it is today. In the decades after World War II, London was a backwater, a largely domestic capital market, dominated by domestic firms and presided over by an old-money elite sustained by fat, fixed commissions, elaborate barriers to entry and rampant insider trading. Den Rest des Beitrags lesen »

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For Top Banking Talent After Brexit, London Loses Some Allure

Posted by hkarner - 13. August 2016

Date: 12-08-2016
Source: The Wall Street Journal

Decision to leave EU creates many uncertainties

LONDON—Thomas Ozello, a student at France’s elite École Polytechnique, planned to follow the well-trodden path from applied mathematics to a London trading desk.

Then Brexit happened, and the 22-year-old Mr. Ozello set his sights on a new destination: Asia.

After the U.K. voted to quit the European Union, London’s position as a global financial talent magnet is in the spotlight. Top mathematicians and economists were traditionally lured from universities across Europe to earn big in the British capital. The City, with more relaxed labor laws than much of Europe and a large cluster of financial companies, was a natural springboard for future financiers.

Now the move isn’t such a no-brainer. “We don’t know whether it will be as good in terms of remuneration or jobs,” said Mr. Ozello, who has one more year of study left in France. “Brexit has created a lot of uncertainties.” So Mr. Ozello is considering a career move to Singapore. Den Rest des Beitrags lesen »

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