MPs Question City on Brexit Scaremonger

MPs Question City on Brexit Scaremonger.

Yesterday, MPs that make up the Treasury Select Committee questioned three senior City figures.  Douglas Flint (HSBC Charirman), Elizabeth Corley of Allianz Global Investors and Xavier Rolet (London Stock Exchange Boss) appeared before the committee.

Discussions moved around the City “over egging” the effects of the Brexit vote on the UK economy and stock markets.  Most people predicting an economic meltdown.  Even the Bank of England has come out and said it got it wrong but is also trying to cover its tracks by suggesting that its £250bn intervention with additional quantitative easing help divert a slowdown.

In addition, the Committee also questioned whether the threat of closing offices or reducing operations and moving more to the EU for many of the major banking groups was a real risk given that 75% of the City’s business is done outside the EU.  MPs also questioned why major banking groups were arguing for a soft Brexit with single market access given the amount of business done outside EU.

Will it really impact that much on the City if single market access is not available?

Is it that the EU finance system needs London and its expertise more that than the City needs the EU?