I’m certain some bank will be more than glad to step in and accept Britons’ deposits if these banks don’t want them.
I am sure that initially banks will leave England but as the EU circle the toilet drain the banks will leave Europe back to Brittan.
Under EU law at the moment, European banks can operate branches in the UK that do not need to be separately capitalised from the parent company abroad.”
I hope someone will forgive me if this is a stupid question. But if the net effect of this is that UK banks now have to be capitalized, and EU banks now have to be capitalized, even if both are under the same flag....well...isn’t that better b/c now the London banks are protected in the event of a crisis, at least a little bit? (Or vice versa, which is unlikely....since those Greek and Italian banks are likely to topple).
Doesn’t that make sense? Or am I missing something? How is having more capital bad for a bank? (Yes, it’s onerous and it slows down lending and raises its cost....but is that so bad right now, when interest rates are 0?)
or not
London is the No. 2 financial center in the world. Banks aren’t leaving London to set up operations in Podunk, Germany. The article is EU BS and propaganda.