Friday, July 8, 2016

Money Center Banks Wondering What the Bureaucrats Will Do Next

It's not the BREXIT that could move some jobs from London to Europe but rather the tit for tat regulations of unelected bureaucrats. Jamie Dimon, the CEO of JPMorgan, discussed the important of the financial passport rule as follows:

"We need a passport rule, like the one we have now in London," said Dimon. "If we have that passport after Brexit, we likely would not have to make any change at all. But I think the European Union will not accept that. It will put more conditions on the U.K. and might force banks to become smaller in London."

If they change the financial passport rule in response to the BREXIT, money center banks may need to establish legal bases throughout Europe. Such moves, a costly expenditure of time and money that could be reversed without noticed, arise from tit-for-tat regulations from bureaucrats rather than free market forces.

Headline: JPMorgan CEO: Brexit may make us leave the UK

The fallout from Brexit continues. The latest potential causality: JPMorgan Chase's status in the U.K.

CEO Jamie Dimon told the Italian paper Il Sole 24 Ore that the uncertainty of 'Brexit' fallout may cause the company to move business out of the country. Of particular concern is a financial "passport" rule that allows banks in the U.K. to more easily sell services throughout the European Union.



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