You are here: Home » Reuters » News
Business Standard

Top bankers warn London's status as a global finance centre at risk from Brexit

Reuters  |  LONDON 

By Andrew and Lawrence White

(Reuters) - Leading bankers warned on Thursday that Britain is yet to feel the real impact of which will undermine its status as a global as companies prepare to shift jobs out of to preserve access to Europe's single market.

said that while the U.S. will keep its new $1.4 billion new in London, it might have chosen another location if it had known was coming.

"We're still building it, the cranes are working but we might have made a different decision a few years ago," Blankfein told in an interview.

The future of as Europe's financial centre is one of the biggest issues in talks because it is Britain's largest export sector and biggest source of tax. Rival cities within the EU are battling to draw highly-paid jobs and the revenues they bring.

As plots Britain's course for Brexit, London's financial services industry is scrambling to prepare for losing access to the world's biggest trading bloc, its biggest challenge since the 2007-2009 financial crisis.

The sector accounts for about 12 percent of Britain's economic output and pays more taxes than any other industry.

Blankfein said companies are taking decisions that may result in less economic activity in Britain although he said that he was surprised at how little effect has had at this stage. Britain is due to leave the EU next March.

"I am at least wrong in that I would've thought there would be a worse outcome by now," he said.

The of Spain's biggest Banco Santander Ana warned that growth in London's financial centre was set to stall due to the turmoil triggered by

"I don't think so many companies or people are going to leave the UK, it is the people that are not coming that we should worry about because the UK was on a huge upward trend and that is not as strong now," told the audience at an event organised by in

But Britain's was more upbeat. He told a conference in that the city will retain its crown as Europe's financial hub and said the government's plans for immigration after will not hurt businesses.

"There is not going to be a mass migration, the critical mass is still going to be here," Davis said.

"We are still going to be the biggest and most important financial centre in the world in five years, in 10 years."

(Editing by Keith Weir)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Thu, April 12 2018. 20:55 IST
RECOMMENDED FOR YOU