Big banks are threatening to ship British jobs overseas and cripple the economy if the nation’s Treasury fails to slow the nation’s exit from the European Union. This would leave Britain under the thumb of Brussels for longer than the nation’s voters have demanded. The outrage has already begun.
Two camps arose after the election. One for a quiet exit, and one for a longer term exit. Markets seemed to show power brokers had opted for a longer term exit. That exit is going to only take longer now if the international banks get their way.
City of London bankers have warned the UK government that the British economy will suffer if their terms aren’t met. Meanwhile, European statesmen are foaming at the mouth to lure international banks to their capitals and put an end to the City’s reign as a global financial powerhouse.
Lawyers are being used to force the Government to bend to the bank’s wishes, and corporations are creating drafts already given to the Treasury for how a longer route to leaving the EU would play out, despite this going against voters wishes.
“The report has been received as a fairly serious piece of work,” a banker at a large international banking confirmed to Express. “It focuses on the legal underpinning of a transitional arrangement. It’s a heavyweight legal piece of work.”
The finance sector wants Brexit to last for a minimum of three to five years and requests the European Court of Justice to govern disagreements during the transition. “We well understand the political sensitivity to that proposition,” the file reads.
If the government opts for the slower withdrawal this will spark a backlash against those who voted for Brexit. In a statement, the Treasury confirmed finance minister Philip Hammond is taking the financial sector’s views seriously.
“Transitional arrangements are likely essential,” the Treasury document states. “This is important in order to avoid potential damage to the ‘real economy’ that is reliant upon uninterrupted access to financial services.”
We’ve read reports, however, that others in the UK government don’t take the banks’ threats of shipping jobs out of the UK seriously.
Brexit serves as a continuation of the same bank bullying demonstrated when international firms pushed the US Congress towards the $700 billion bailout after the 2008 financial crisis. It also serves as an example of the sort of headwinds President Donald J. Trump could face if he goes against the banks.
Image from Shutterstock.