BRUSSELS: The EU is preparing to move its European Banking Authority from London following the UK’s vote to leave the union, EU officials said on Sunday, setting up a race led by Paris and Frankfurt to host the regulator.
Coming a day after the UK’s Jonathan Hill resigned and was replaced as European commissioner for financial stability, financial services and capital markets by the Commission’s “Mr Euro,” Valdis Dombrovskis, the move underlines how the City of London can expect to be frozen out of EU financial regulation — and possibly from Europe’s capital markets — depending on the terms of the Brexit deal.
While those who argued for the UK to leave the EU said the financial industry would thrive without EU shackles, some of its biggest employers, including JPMorgan, are scouring Europe to find new locations for their traders, bankers and financial licenses.
