Carney Sounds the Brexit Alarm Again
- Central bank says trillions of pounds of contracts are at risk
- ‘Action is needed’ by both sides to ensure continuity
This article is for subscribers only.
Mark Carney warned that time is running out to remove the threat that Brexit poses to trillions of pounds of derivative contracts, stepping up pressure on the European Union to act.
Unless the EU follows the U.K. government in putting in place temporary workarounds, there could be havoc in financial markets when Britain leaves the bloc next March. Firms may find themselves unable to service insurance policies and as much as 96 trillion pounds ($127 trillion) of cleared and uncleared derivatives contracts, the Bank of England governor said at the publication of the twice-yearly Financial Stability Report.