Re:$1T is leaving Britain because of Brexit
by JAlexoid on Monday January 07, 2019 @04:01PM
(#18850018)
International banks will have bigger subsidiaries in EU countries, while UK based banks will have to get new full fledged subsidiaries in EU.
EC already warned the banks, that shell branches will not be tolerated... As complex operations cannot be overseen by people residing outside of EU jurisdictions(that's a warning about being a shady dealer, while hiding away from EU)
Re:$1T is leaving Britain because of Brexit
by bayesian_horse on Monday January 07, 2019 @01:24PM
(#18848219)
These banks can't do that part of the business out of the UK or with a UK workforce anymore. So the tax income, foreign currency trade etc goes elsewhere.
Re:$1T is leaving Britain because of Brexit
by cm2187 on Monday January 07, 2019 @01:25PM
(#18848241)
Correct. Though if that business was already made out of a EU branch of a London bank (likely for retail business), the tax income was already in the EU, not in the UK.
Re:$1T is leaving Britain because of Brexit
by JAlexoid on Monday January 07, 2019 @04:06PM
(#18850074)
London has thousands upon thousands of people working in the banking sector. JPMorgan, Bank of America, VTB, Bank of China - all have 0 retail operations in London and massive headquarters. Citibank has barely any retail operations as well...
Re:$1T is leaving Britain because of Brexit
by bayesian_horse on Tuesday January 08, 2019 @03:12AM
(#18854097)
The EU doesn't tax anything, though. You may be talking about the non-UK EU members, instead. And no, I was not referring to parts of that business...
nitpicking but these are unlikely to be branches but rather subsidiaries. London banks will still be able to have branches in the EU to clear EUR payments and access the ECB but are unlikely to be able to do any regulated activity (selling financial products, taking deposits or writing mortgages) out of these branches.