London could lose EU euro clearing role

[webfact]

London could lose EU euro clearing role

 

The European Union has revealed a draft law to give it the power to move the lucrative euro clearing business out of London and keep it in the EU after Britain leaves the Union in 2019.

 

London currently processes three-quarters of the trade in this financial sector, providing thousands of jobs.

 

But European Commission vice-president Valdis Dombrovskis said Brexit needed "certain adjustments to our rules".

 

Full story: http://www.bbc.com/news/business-40264755

 

-- © Copyright BBC 2017-06-14

[darksidedog]

It would be a massive blow for London if Euro clearing was moved overseas, though there is logic in having Euro clearing occurring in an EU country.

I sense this is an early move in the EUs Brexit bargaining positioning.

[pegman]

2 hours ago, darksidedog said:

It would be a massive blow for London if Euro clearing was moved overseas, though there is logic in having Euro clearing occurring in an EU country.

I sense this is an early move in the EUs Brexit bargaining positioning.

I don't see this as a bargaining chip. As I've been saying on here since the vote there is no way in hell that ANY of the EU's financial services industry stays in the UK. Any remaining EU country politician that allowed that, against the best interests of their own population, should be dumped as soon a practical. This was always the true danger of a Brexit. Severe pain is in store. 

Edited June 14, 2017 by pegman

[CaptHaddock]

I wonder if the Irish could take advantage of this opportunity and get some of that business in Dublin.  Ireland has high education levels and plenty of English-speakers.

[pegman]

4 minutes ago, CaptHaddock said:

I wonder if the Irish could take advantage of this opportunity and get some of that business in Dublin.  Ireland has high education levels and plenty of English-speakers.

Yes, has already started.

 

https://www.siliconrepublic.com/companies/jp-morgan-jobs-dublin-london-brexit

[CaptHaddock]

29 minutes ago, pegman said:

Yes, has already started.

 

https://www.siliconrepublic.com/companies/jp-morgan-jobs-dublin-london-brexit

You would think if Teresa May had any wit about her she would immediately announce some version of unilateral permission for people like JP Morgan employees to remain in Britain after Brexit just so that those companies were not forced to relocate their enterprises.

 

Anyway, maybe Dublin can recover some of the prosperity and eminence it enjoyed before the Act of Unioin.

[dunroaming]

The international banks will always have a presence in London even when we leave the EU but it will be greatly downsized I would think.  Whether or not this is posturing from the EU side pre the negotiations it is hard to tell but this subject was raised months ago so it is nothing new.  There is no doubt that Brexit is going to be destructive and expensive.

[ilostmypassword]

5 hours ago, CaptHaddock said:

You would think if Teresa May had any wit about her she would immediately announce some version of unilateral permission for people like JP Morgan employees to remain in Britain after Brexit just so that those companies were not forced to relocate their enterprises.

 

Anyway, maybe Dublin can recover some of the prosperity and eminence it enjoyed before the Act of Unioin.

It's not a question of May's granting permission. It will be up to the post-Brexit EU.

[retarius]

Good riddance to the bankers. They have ruined Britain with their outrageous greed. 

[ilostmypassword]

1 minute ago, retarius said:

Good riddance to the bankers. They have ruined Britain with their outrageous greed. 

But the ones that remain will still be nurtured in the warm and fuzzy embrace of the Tories.

[goldenbrwn1]

The EU has clearing houses in the US aswell, are they coming back? The US has clearing houses in london and the EU aswell as in the US. London has yuan clearance houses as to name one of many . Why does the EU think it needs to have the ones back from london but not from anywhere else?  

Edited June 14, 2017 by goldenbrwn1

[dunroaming]

10 minutes ago, retarius said:

Good riddance to the bankers. They have ruined Britain with their outrageous greed. 

Yes let's get rid of one of our most lucrative forms of income for the UK.  Duh!

[ilostmypassword]

1 minute ago, goldenbrwn1 said:

The EU has clearing houses in the US aswell, are they coming back? The US has clearing houses in london and the EU aswell as in the US. London has yuan clearance houses as to name one of many . Why does the EU think it needs to have the ones back from london but not from anywhere else?  

If your company is not legally constituted in a foreign country, there are certain things it's prohibited from doing. Or can be prohibited from doing. Functionally, the EU is one country as far as passporting rights go.

[terryw]

Why should US banks located in London lose business? That is the question that will be asked in New York and Washington.

 

The EU Comission clearly does not understand how international finance operates across borders. They likely to find themselves involved in a trade war with the US if they try to penalise US banks.

Edited June 14, 2017 by terryw

[goldenbrwn1]

7 minutes ago, ilostmypassword said:

If your company is not legally constituted in a foreign country, there are certain things it's prohibited from doing. Or can be prohibited from doing. Functionally, the EU is one country as far as passporting rights go.

So why are they not pulling Euro clearing houses from other countries that are already outside of the EU?

[soalbundy]

44 minutes ago, retarius said:

Good riddance to the bankers. They have ruined Britain with their outrageous greed. 

Yeah right, who needs their tax money, who needs the good paying jobs they supply.

[soalbundy]

Brexit wont happen, operation 'tail between legs and crawl back' oh and welcome back but ditch the pound and take the EURO.

[dunroaming]

8 minutes ago, soalbundy said:

Brexit wont happen, operation 'tail between legs and crawl back' oh and welcome back but ditch the pound and take the EURO.

And I thought I was cynical!

[sujoop]

Nevermind, Brexperts will be along soon stating this is either fake news or somehow a good thing...

or perhaps more Brexiteer 'common sense' ala:

 

1 hour ago, retarius said:

Good riddance to the bankers. They have ruined Britain with their outrageous greed. 

Brexiteer's exceptionalist / myopic point of view:

 

 

 

 

 

 

Edited June 14, 2017 by sujoop

[soalbundy]

29 minutes ago, dunroaming said:

And I thought I was cynical!

Verhofstadt has just said as much, basically, 'you can come back but not on the same terms as before, no rebate, no rejection of schengenen, and no pound. Well done May. Tee hee hee hee ha ha ha, take your country back Brexiteers.

Edited June 14, 2017 by soalbundy

[CaptHaddock]

1 hour ago, ilostmypassword said:

It's not a question of May's granting permission. It will be up to the post-Brexit EU.

Not true.  Britain can unilaterally grant whatever permissions it wishes to foreign residents once it has left the EU and can promise to do so now.  Post-Brexit the EU will have no say on Britain's immigration policies except to the extent that those are covered by the exit agreements.  But even in that case Britain can always be more flexible that it is required to be under any agreement.

[goldenbrwn1]

8 minutes ago, soalbundy said:

Verhofstadt has just said as much, basically, 'you can come back but not on the same terms as before, no rebate, no rejection of schengenen, and no pound. Well done May. Tee hee hee hee ha ha ha, take your country back Brexiteers.

They won't take us back because we haven't left yet. All will just carry on as normal if we decided to stay. And for losing the pound ect ????. They are just as worried as we are about brexit, they would take us back with open arms. Obviously there will be lots of told you so ect but that will blow over very quickly.

[CaptHaddock]

With any luck the Brexit disaster and the resulting economic losses should shut the Tories out of power for a generation.  And Corbin is looking more like the guy who can make that happen.

[Aforek]

26 minutes ago, goldenbrwn1 said:

They are just as worried as we are about brexit, they would take us back with open arms. 

Worried ? EU is ready for negotiation since last year ( one year already ! ), it's Britain which is very slow ; why would we take you back with open arms ? you want to leave, you leave ; nobody is worried, don't dream of it 

[soalbundy]

44 minutes ago, goldenbrwn1 said:

They won't take us back because we haven't left yet. All will just carry on as normal if we decided to stay. And for losing the pound ect ????. They are just as worried as we are about brexit, they would take us back with open arms. Obviously there will be lots of told you so ect but that will blow over very quickly.

activating article 50 was saying goodbye, to come back all 27 members must agree and you can bet there will be a case of 'yes but....' Verhofstadt is right, if you have them by the curly's then twist.

[dunroaming]

10 minutes ago, soalbundy said:

activating article 50 was saying goodbye, to come back all 27 members must agree and you can bet there will be a case of 'yes but....' Verhofstadt is right, if you have them by the curly's then twist.

Don't think I agree with that.  Looking at the bigger picture the EU would be better off with the UK in and with the same deal as before.  That would certainly be the view of Merkel and Macron.  However if we did want to retract Brexit they would try to impose some sort of penalty to deter others from doing the same.  Nobody, except for the Brexiteers want this divorce and their numbers are getting smaller as time goes by.

 

Maybe if the Brexiteers realised that post brexit we would still have as many people coming to the UK from the EU then they too may change their view 

[goldenbrwn1]

36 minutes ago, Aforek said:

Worried ? EU is ready for negotiation since last year ( one year already ! ), it's Britain which is very slow ; why would we take you back with open arms ? you want to leave, you leave ; nobody is worried, don't dream of it 

Since last year!? Wow you really are on the inside concerning brexit. Oh and please don't put a link up to some media story saying it.  You have to remember it was a close call this brexit vote ( I voted remain) and it's going to effect the EU a hell of a lot  aswell . And imagine what if 5 or so years down the line and the UK is doing better on the outside of the EU, do you really think the EU would be pleased about that and then encouraging more exits? The UK is not a basket case country, it's a huge economy with a long history and attraction to the rest of the world. I would love brexit not to happen but don't for one minute think that the EU is immune to this and is not bothered.

Edited June 14, 2017 by goldenbrwn1

[ilostmypassword]

28 minutes ago, goldenbrwn1 said:

Since last year!? Wow you really are on the inside concerning brexit. Oh and please don't put a link up to some media story saying it.  You have to remember it was a close call this brexit vote ( I voted remain) and it's going to effect the EU a hell of a lot  aswell . And imagine what if 5 or so years down the line and the UK is doing better on the outside of the EU, do you really think the EU would be pleased about that and then encouraging more exits? The UK is not a basket case country, it's a huge economy with a long history and attraction to the rest of the world. I would love brexit not to happen but don't for one minute think that the EU is immune to this and is not bothered.

You give yourself away when you write "And imagine what if 5 or so years down the line and the UK is doing better on the outside of the EU, do you really think the EU would be pleased about that and then encouraging more exits?"  Anything is possible but I haven't seen any plausible explanation of why that might be the case.

[goldenbrwn1]

4 minutes ago, ilostmypassword said:

You give yourself away when you write "And imagine what if 5 or so years down the line and the UK is doing better on the outside of the EU, do you really think the EU would be pleased about that and then encouraging more exits?"  Anything is possible but I haven't seen any plausible explanation of why that might be the case.

Or not the case...why wouldn't it not be a possibility? And I give myself away ?? In what manner?? ? I would love the UK and EU to make up but if that's not going to happen, then so be it. Britain is not going to crumble or fall into the abyss, I haven't seen any plausible explanation of why that might happen.

Edited June 14, 2017 by goldenbrwn1

[ilostmypassword]

1 minute ago, goldenbrwn1 said:

Or not the case...why wouldn't it not be a possibility? And I give myself away ?? In what manner?? ?

In the sense that anything is possible, sure.  But is it a realistic scenario?  Not so much.