Brexit’s Big Winner? It Could Be New York City

Many in the London banking industry are asserting that the city’s financial operations could relocate to New York City once Prime Minister Theresa May initiates Brexit. Banking is crucial to the British economy and accounts for up to 10 percent of national GDP, reports David Francis for Foreign Policy. He lists reasons for relocating. London bankers had opposed Brexit and can’t help but wonder what other protectionist trends and uncertainties are in store. For many banks, London and New York are their largest or second largest offices, and transfer of operations could be smooth. Another reason banks eye moving across the Atlantic instead of the English Channel is the EU’s reputation for bureaucracy with concerns about efficiency an regulations as well as Wall Street's ability to manage the world’s 17 major currencies. Analysts anticipate that EU members want to cut off British access to the European Common Market and related benefits. To be sure, such a transcontinental move is not a done deal. As the bankers wait for May to trigger the process and an official EU response, they monitor the negotiations for tone and orderliness. – YaleGlobal