, Columnist
Banks' Brexit Plans Are Headed for the Shredder
Accounting for a Trump presidency would be hard enough.
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Another day, another Brexit contingency plan: Global banks are preparing for London to be stripped of its ability to clear euro-denominated derivatives after the U.K. leaves the EU, according to Bloomberg News.
Banks are absolutely right to plan for this kind of eventuality, even if, as we've argued before, it would be an unlikely and costly one. Forcibly wresting euro clearing from non-euro countries would likely raise hackles from the U.S. to Singapore; European corporate clients and investors would also probably push back against the disruption and higher costs this move would entail.