Do the giant banks ‘tell’ Britain to choose a good soft Brexit and ‘remain’ or else…?

Skyline of the City of London (capital markets, banks, London Stock Exchange). © European Union, 2017/Source: EC – Audiovisual Service / Photo: Jack Taylor.

It may be true that the world is tired watching Britain being completely confused about choosing the way to exit from the European Union. Yet, the almost schizo division plaguing the Brits and their political elites alike still paralyzes to this date the divorce negotiations. Countries to be most affected by Brexit like Holland are seriously preparing for a catastrophic no-deal exit. In view of that, the UK’s Brexit Secretary, David Davis, tries to break up the mainland front. The other 27 EU member states have unanimously set tough terms for Britain’s exit. Let’s start from the latest developments.

Last Friday, Davis, in a BBC interview said “countries like Denmark, Holland, Italy, Spain and Poland”, want to break away from the hard Franco-German line, in reference to the hard Brexit conditions. The 27 EU countries have unanimously adopted a tough stance regarding Britain’s exit from the Union. They demand to first settle the cost London has to pay for the divorce and then discuss the future trade relations. For Britain though, future economic relations is the key Brexit issue and London wants to shape it in parallel with the discussions about the cost. The 27 leaders are to meet on 14 December to assess London’s response about all that.

First the divorce cost

The Brussels bureaucracy estimates the ‘leave’ cost at anything between €40 and €60 billion. Prime Minister Theresa May has accepted to pay €20 billion for a two years interim period after March 2019, during which nothing will change in the UK-EU relations. Brussels has denied discussing that separately. Michel Barnier, the Chief EU negotiator for Brexit, at some point appeared positive discussing it, but Berlin and Paris were adamant about their position on the negotiations agenda; fist the divorce money London has to pay and then the rest.

In relation to that, the EU Council has set a deadline for Britain for the end of November, beginning of December to settle the money issue. Then, the EU27 will assess the UK’s position in their meeting of 14 December. As things stand now, they will accept to discuss an interim period and the future trade relations on that day, but only after London has agreed how to settle the divorce cost.

Divisive tactics repelled

Davis’ comments about a split in mainland’s camp vis-à-vis Britain, were badly received on the other side of ‘La Manche’. The same day, Donald Tusk, the President of the European Council, found the opportunity to remind to PM Theresa May that her government has to come up with a relevant response on Brexit in time, for the 27 EU leaders to discuss in mid December. Otherwise, he said, London will lose the opportunity to “push the talks to the negotiations about the future trade relations”. This deadlock is a major predicament for a large number of Britain’s economic sectors, with the London City’s financial hub most important amongst them.

In this respect, it’s very interesting to watch the approach towards Brexit of those giant banks, which make up the core of the London City. Up to now, their standard reaction to a possibility of a hard Brexit or worse, to a no-deal Brexit, was to advertise their readiness to move some business across the Channel, preferably to Frankfurt. As if it would be business as usual, regarding their European and global dealings. Of course, they forget to mention that Germany or France are not like London. In mainland Europe banks cannot ‘wash’ unlimited quantities of money that easily in collaboration with the well known tax and otherwise havens under British jurisdiction, like the English Channel islets and the Caribbean islands.

Bankers alarmed

From the very first moment when the Brits voted ‘leave’, the bankers who made the London City what it is today, didn’t believe things may come to this; a hard or no-deal Brexit. However, bit by bit the London financial ‘community’ understood that a hard Brexit would cut them off from the mainland opportunities in tax evasion and money washing ‘markets’. The same is true for the huge legitimate capital markets. Such activities can only be best served from London. Today, the scheme works perfectly and the City bankers make unbelievable profits in servicing the ‘needs’ of mainland Europeans, and of course of the rest of the world.

Under the EU umbrella the London City financial groups have the so called ‘passport’, enabling them to offer their services all over the 28+1 EU member states  from their offices in Britain. All that may end though, if the UK leaves the EU without a good agreement, servicing the interest of London’s City.

A no-deal Brexit

When this danger became real, the bankers tried to approach the government and the Prime Minister in 10 Downing Street. To the financiers’ astonishment, hard Brexiteers in government didn’t seem available to seriously take account of the London City problems. The bankers were never invited by the Prime Minister or key ministers and the populist Brexiteers proved to be as allergic to financiers as they are to Globalization.

Now, the City people are totally discouraged with what they can expect from the May administration. For the first time, the giant baking groups have not a strong clout on British politics. So, they have adopted rebellious tactics. Last week, Goldman Sachs CEO, Lloyd Blankfein, a Wall Street old fox, had an ‘advise’ for the Brits. According to a Reuters report in relation to Brexit, he said, “Better sense of the tough and risky road ahead. Reluctant to say, but many wish for a confirming vote on a decision so monumental and irreversible. So much at stake, why not make sure consensus still there?”

‘Advising’ the Brits

Obviously, he advises the Brits to vote again, and understandably this time they should decide differently than on 23 June 2016. If he didn’t want them to vote differently, he wouldn’t have asked for a ‘confirming vote’. Why is a confirmation needed, if the one who asks for it, doesn’t mind the result? Obviously, this unbelievable guy, Blankfein who can shake Britain’s economy any moment he chooses, is now showing his teeth. It’s not the first time though a financier of global dimensions had something dead serious to tell Britain.

Everybody remembers the George Soros ‘attack’ on the British Pound Sterling and his success in devaluing it, and with it blocking Britain’s option to join the Eurozone. On Black Wednesday, 8 October 1990, Soros broke the Bank of England by short selling the Pound. He forced Britain to remove the Pound from a scheme pegging it with the Deutsche Mark. Does Blankfein have something like that in mind? Is the largest bank of the world ready to question 10 Downing Street’s decisions about Brexit? Is Goldman Sachs threatening Britain with a new financial attack?

Remember Soros

It’s impossible to divine what Blankfein really has in mind, but Goldman Sachs’ goldmine in London is clearly threatened. Soros didn’t do what he did just because he believed the Pound was overvalued. Judging from the results, he primarily managed to block the Pound’s association with the then incubating single European currency. He was not alone in it. Other financial sharks lent him $10 billion to short the Pound.

It is evident that Soros was representing something bigger than himself. Is Blankfein organizing something similar? We will soon know. The London City financial hub probably has many more secrets, than we laypeople can imagine. Some key factors may think London should never be cut off from mainland Europe and strive to make sure they succeed in that.

The losers

Napoléon Bonaparte who tried hard, lost the Waterloo Battle. He then disappeared and the City celebrated wildly. Now that Brexit threatens again to cut off the City from mainland, a globalized wave of reactions has arisen.

Only Donald Trump celebrated the ‘leave’ vote, but currently he avoids mentioning it, being preoccupied by protecting himself from the Russian scheming. He must have learned something by now which he didn’t know on 23 June 2016. In any case, soon we will know more about all that.

 

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

the European Sting Milestones

Featured Stings

How to build a more resilient and inclusive global system

Stopping antimicrobial resistance would cost just USD 2 per person a year

Governments should step up their efforts to give people skills to seize opportunities in a digital world

How to build a paradise for women. A lesson from Iceland

A Sting Exclusive: Paris Climate Change Summit, a defining moment for humanity, by Ulf Björnholm Head of UNEP Brussels

European elections: A chance to repel both nationalism and no-deal Brexit

UN chief encourages victims of terrorism to ‘raise up their voices’

An analysis of the impacts of climate change on human health

EU-wide rules for safety of drones approved by European Parliament

Statement by the Brexit Steering Group on UK paper on EU citizens in the UK

How do you get people to trust self-driving vehicles? This company is giving them ‘virtual eyes’

The Europeans back Russia-Turkey on Syria: A ‘Waterloo’ for Saudis and their Crown Prince

On World Day to Combat Desertification, UN shines spotlight on ‘true value’ of land

Europe enters uncharted waters with Kiev-Moscow standoff

Are the G20 leaders ready to curb corporate tax-avoidance?

The Middle East needs a technological revolution. Start-ups can lead the way

Distributed ownership: what it means and how it could transform India

UN rights chief ‘alarmed’ by upsurge in attacks against civilians in Syria’s Idlib

ECB should offer more and cheaper liquidity if Eurozone is to avoid recession

High internet taxes are restricting access and slowing economic growth

In Bali, UN chief Guterres outlines importance of international financial cooperation for sustainable development

Why the Fourth Industrial Revolution needs more arts graduates

Global Citizen – Volunteer Internships

INTERVIEW: UN’s top official in North Korea foresees ‘surge’ in humanitarian aid

Inflation and interest rates indicate urgent need for action

Sub10 Systems @ MWC14: Bridging the Ethernet of the Future

What have the banks done to the markets making them unable to bear cheap oil?

IQ scores have been falling for decades, new study finds

“Airbnb and YouTube are two great examples of a crowd based capitalism”, key stakeholders outline the boundaries of the 4th Industrial Revolution in Davos

New EU rules ensure better protection for 120 million holidaymakers this summer

Japan’s holiest shrine is pulled down and rebuilt every 20 years – on purpose

China will be the world’s top tourist destination by 2030

Acute food insecurity ‘far too high’ UN agency warns, as 113 million go hungry

ECOFIN: Choosing between the re-unification of Eurozone and a stalemate

UN chief welcomes agreement by rival leaders in South Sudan, as a step towards ‘inclusive and implementable’ peace

Your chocolate can help save the planet. Here’s how

Here’s how to build energy infrastructures fit for the future

EU-US Privacy Shield data exchange deal: US must comply by 1 September, say MEPs

Does the sharing economy truly know how to share?

Flexible jobs can make work-life balance worse, a German study finds

ECB bets billions on Eurozone’s economic recovery

Brexit and migration dominates the debate on October’s EU summit

Galileo and EGNOS programmes back in orbit powered with €70 billion

4 myths about manufacturing in the Fourth Industrial Revolution

South Korea once recycled 2% of its food waste. Now it recycles 95%

Ηealth’s foundation is falling apart: what can we do about it?

For Youth Rights: steps forward for better protection.

Welfare of transported animals: MEPs urge EU states to do a better job

Governments and non-state actors need to take urgent action to meet Paris Agreement goals

‘Informing is not a crime’ UN chief calls for better protection of journalists, press freedom

Will the European Court of Justice change data privacy laws to tackle terrorism?

Dangers of poor quality health care revealed ‘in all countries’: WHO report

Reality Shock

A Sting Exclusive live from Brussels: Solheim’s consequential visit leading the world and the UN

Security Council extends mandate of UN Interim Force in Lebanon for a year

Fostering defence innovation through the European Defence Fund

How the Middle East is suffering on the front lines of climate change

UN refugee agency presses States to aid 49 refugees stranded on Mediterranean

Air quality: Commission takes action to protect citizens from air pollution

The 28 EU leaders don’t touch the thorny issues

UN condemns ‘heinous’ suicide attack on education centre in Afghanistan

MEPs urge EU states to ensure better care of transported animals

More Stings?

Speak your Mind Here

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s