Wall Street banks could desert Britain if the country decides to leave the European Union, senior figures in the industry have reportedly said.
Some major institutions are believed to be already drawing up plans to move activities abroad amid concerns that the UK is drifting further away from the EU.
Most US and Asian banks currently run their main European operations from the UK, which gives them a passport to provide services across the EU. But if the UK left the European Union, it is believed to be unlikely foreign banks based in London would carry on receiving the same rights.
According to the Financial Times, US-based banks including Bank of America, Citigroup and Morgan Stanley are considering Ireland as a favourable alternative location for business currently conducted in London.
Economic clustering just doesn’t work that way. The City is The City just because it’s The City. There’s half a million people there, all working on the finances of the globe. It’s the same reason the latest pottery to open in the UK opened in Stoke on Trent. Just because that’s where everyone who knows how to do it is.
Being outside the EU would be as much of a problem as being outside the eurozone has been. The same sources told us that would be disastrous for the City…….