What Would `Brexit' Really Mean for Firms in London's City?: Q&A
- Bank `passporting' access across EEA nations may be at stake
- EU fans Goldman and Lloyds of London face skeptics like Odey
Brexit Concerns Creep Into UBS' U.K. Equities View
The U.K.’s looming in/out referendum on European Union membership, which may come as early as June, has sparked jitters, with analysts predicting declines in everything from London property prices to the pound. But what would so-called Brexit really mean for the City of London? Here are answers to common questions, based on research notes and interviews with analysts, lawyers and bankers.
Financial services account for 180 billion pounds ($258 billion) a year -- about 12 percent -- of U.K. economic output and contribute 66 billion pounds in taxes. In some areas, like foreign exchange trading (41 percent of the world total) and over-the counter derivatives (49 percent), London is the undisputed global leader. Opponents of a Brexit fear a departure would precipitate years of uncertainty and steady waning of influence and market share.