The Finance Foundation
Reinventing capitalism for all
President of the Finance Foundation

“Financial Europe is about to leave London” with very negative consequences for Britain


   Get the cake, keep it and eat it at the same time.

 The UK and London would like to apply that principle. They want to remain the financial powerpoint of Europe, without being in Europe. 

            As I already mentioned a few times, the most difficult first hurdle, only the first, is the Euro clearing market. The volume of daily transactions  is “only” 900 billion dollars. Per day. This is for the processing of euro denominated derivatives contracts. This is led by the London Stock Exchange clearing house. The name is LCH.

            Apart from money, the departure of clearing activity from London to the continent means, roughly, 100.000 direct jobs lost. The indirect loss of jobs could grow to 250.000.

            One understands that both Brussels, on the one side, Paris, Frankfurt, Amsterdam, on the other side, are fighting for that jewel. 

            And of course, the English side does it as well. 

            The most recent, obvious, visible difficulties and ineptitudes demonstrated by the British government make it even more difficult for London to keep that; not speaking of other assets, such as banks, money management companies, not speaking of the whole financial system. 

            It is a total lunacy on the part of Prime Minister May to believe, for one second, that Europe will accept to have its financial capital outside of its boarders. 

            The European negotiator, Frenchman Michel Barnier is ready to start talking in a few days. His only problem is, with whom? For the time being, there is hardly a government in London.

            Therefore, I have a simple question: How on earth could all those British remarkable brains decide to implement a plan like this? Who, in his right mind, could believe, for one second, that the outside totally foreign country could command  the business, economy and finance of a continent?



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