Think on matters just for a moment. Who is at risk from a no deal Brexit cutting The City off from the European markets? The firms in The City of the customers in the markets?
Say that all food shops closed for 90 days starting tomorrow. Who has the problem? Sure the food suppliers are more than a bit pissed about it but who has the actual problem? The people who can’t eat for 90 days, obviously enough. So, if The City can’t service the Europeans then who has the problem, The City of those not being serviced?
The Bank of England getting this right of course:[perfectpullquote align=”full” bordertop=”false” cite=”” link=”” color=”” class=”” size=””] Publishing its twice yearly financial stability report, the central bank said progress had been made to ready UK and European banks, as well as international lenders based in London, for a no-deal scenario. However, it warned that about half of EU companies using banks registered in Britain could be cut off from their banking services after Halloween, as they had yet to fully prepare for Brexit. “In the absence of further action by EU authorities, some disruption to cross-border financial services is possible. Although such disruption would primarily affect EU households and businesses, it could amplify volatility and spill back to the UK in ways that cannot be fully anticipated or mitigated,” the Bank said. [/perfectpullquote]
The translate that out of centralbankese, “they’ve a hell of a problem although we’ll mutter something more to be polite as well.”
Or, as we’ve been saying for some time now. it’s not The City that has the problem with Brexit even one of the no deal variety.