$1T is leaving Britain because of Brexit

Re:$1T is leaving Britain because of Brexit by Consultant32452 on Monday January 07, 2019 @12:59PM (#18847880)

Again, it'll take about ten seconds for those London Banks to spawn subsidiaries in a member state to take care of that.

Meanwhile they get to drop the EU common external tariff. That alone will be a significant economic benefit to UK.

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Re:$1T is leaving Britain because of Brexit by CaptainZapp on Tuesday January 08, 2019 @09:28AM (#18855676)

Again, it'll take about ten seconds for those London Banks to spawn subsidiaries in a member state to take care of that

You are quite clearly misinformed what I actually takes in most European countries to get a banking license.

It's not quite the same thing as opening a corporate entity in, say, Delaware.

And as the EU made quite clear: Renting a mail box in Frankfurt and setting up a limited company won't quite do the trick.

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Re:$1T is leaving Britain because of Brexit by Consultant32452 on Tuesday January 08, 2019 @02:26PM (#18858695)

However, the LSE says that relocation would have little financial impact as LCH has a clearing house in Paris that is fully authorised under EU rules.

https://www.bbc.com/news/business-40258449

So a few things from that article are important. The first is that a subsidiary already exists. The second is that some clearing already occurs in the US, so there's precedent for non-EU Euro clearing. And third, it looks like the European Central Bank has been trying to get clearing out of London anyways, but was stopped by the courts.

So it's not likely to be stopped since the US clears transaction, and even if it is there's already a subsidiary in France to pass it all through. There'll be some local job hits, but the sky is falling stuff is nonsense. Counties and businesses will still want to do business with UK and they will figure out how to do it very quickly.

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