European
banks can face apocalyptic trouble should Britons vote to exit the Union. According
to analysts, funding costs could spread bond deals.
This would
mean huge troubles and even deficits for many EU banks connected to the strong
UK financial institutions.
The EU's
regulation on UK banks will disappear. Along with these are EU-standard deals
disappearing with the imposition of new regulations from British banks alone.
Many EU
financial institutions will be forced to scale back their operations after
cementing their presence inside Britain to reach further markets.
Central
Bank planning would be the one most hard-hit. According to analysts, the huge
staffing changes in European and British banks could see the removal of EU
banks' London-based operations.
However,
JPMorgan Chase's CEO Jamie Dimon believes the situation isn't for the worse.
"One
can reasonably argue that Britain is better untethered to the bureaucratic and
sometimes dysfunctional European Union," he wrote in his annual letter to
shareholders earlier this month. "The European Union began with a
collective resolve to establish a political union and peace after centuries of
devastating wars and to create a common market that would result in a better
economy and greater prosperity for its citizens. These two goals still exist,
and they are still worth striving for."
