But London may remain a finance hub.
Aaron Klein is a fellow and policy director at the Initiative on Business and Public Policy at the Brookings Institution.
London’s role as Europe’s financial services center has been called into question as a result of the UK’s decision to leave the European Union – the “City’s” future in the world of finance is very much in doubt.
Yes, London will remain a financial services hub, as it has been one for a long time. After all, the UK is still the world’s 6 th largest economy. But the size and scope of that hub could be very different depending on how things shake out with Brexit. Frankfurt is a logical landing spot for financial services firms given its secondary role behind London. Amsterdam has a long history in banking. And France’s Prime Minister has made clear his country’s strategic desire to lure financial services firms to expand their operations in Paris , even promising to keep taxes on expats living in France the most favorable in Europe to attract London’s finance sector.
Meanwhile , major American firms like JPMorgan JPM 2.06% , Goldman Sachs GS 2.30% , Bank of America Merrill Lynch BAC 1.15% , and Morgan Stanley MS 2.65% , as well as Britain’s Standard Chartered made a pledge to British finance minister George Osborne to try to support London’s financial sector in the wake of Brexit, although details on what this means are not clear.
In order to understand what may happen and where the future of financial services may go, it is important to understand how and why financial services hubs exist.
London was the global financial services hub for a long time; after all, London was the largest city in the world in 1900. As the capital of the […]
