London’s City finance hub braces for possible Brexit

AFP, LONDON: With one month to go before Britain’s vital in-out EU referendum, London’s City finance district is busily planning ahead for a potential “Brexit”.
Big City firms, many of which are housed in skyscrapers that dominate the London skyline, are seeking to protect themselves from market volatility should Britons vote “Leave”, experts say.
Major players like HSBC and Deutsche Bank have said they may need to shift activities abroad and the Bank of England is boosting liquidity in the weeks around the June 23 referendum to avoid a credit crunch.
But big banks, insurance giants, trading exchanges and accounting firms are mostly keeping mum on the full “toolbox” of contingency measures.
Anastasia Nesvetailova, economics professor at City University London, told AFP that big finance firms will be seeking haven assets, mulling extra liquidity to ward off a cash crunch—as well as eyeing potential re-location and
job cuts.
“The main tool in such a box would be stocking up on reserves—cash, quality securities, collateral—whose value is immune to Brexit,” Nesvetailova told AFP.
“In addition to boosting their buffers, financial institutions are communicating with regulators and are assessing the range of possible risks.
“This involves scenario planning; stress-testing their funding positions, proofing their balance sheets against a massive and prolonged liquidity crisis (and) planning for staffing needs in the eventuality of relocating some of the activities away from London.”
Following an EU exit, London could shed 100,000 jobs, according to finance lobbyists TheCityUK.
That is almost one in seven of the estimated 729,600 people employed by financial and related professional services in the traditional City district— and the newer Canary Wharf area that houses HSBC and Barclays.

Londons City finance hub braces for possible Brexit

AFP, LONDON: With one month to go before Britains vital in-out EU referendum, Londons City finance district is busily planning ahead for a potential Brexit. Big City firms, many of which are housed in skyscrapers that dominate the London skyline, are seeking to protect themselves from market volatility should Britons vote Leave, experts say. Major players like HSBC and Deutsche Bank have said they may need to shift activities abroad and the Bank of England is boosting liquidity in the weeks around the June 23 referendum to avoid a credit crunch. But big banks, insurance giants, trading exchanges and accounting firms are mostly keeping mum on the full toolbox of contingency measures. Anastasia Nesvetailova, economics professor at City University London, told AFP that big finance firms will be seeking haven assets, mulling extra liquidity to ward off a cash crunchas well as eyeing potential re-location and job cuts. The main tool in such a box would be stocking up on reservescash, quality securities, collateralwhose value is immune to Brexit, Nesvetailova told AFP. In addition to boosting their buffers, financial institutions are communicating with regulators and are assessing the range of possible risks. This involves scenario planning; stress-testing their funding positions, proofing their balance sheets against a massive and prolonged liquidity crisis (and) planning for staffing needs in the eventuality of relocating some of the activities away from London. Following an EU exit, London could shed 100,000 jobs, according to finance lobbyists TheCityUK. That is almost one in seven of the estimated 729,600 people employed by financial and related professional services in the traditional City district and the newer Canary Wharf area that houses HSBC and Barclays.