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.

 

the sting Milestones

Featured Stings

Can we feed everyone without unleashing disaster? Read on

These campaigners want to give a quarter of the UK back to nature

How to build a more resilient and inclusive global system

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

“Healthcare system and socioeconomic inequities”-through the lens of developing nations

Why the unconscious is the path of least resistance to eradicating bias in your workplace

This is what buildings of the future will look like: and 5 ways to get there

Which countries’ workers spend the longest (and shortest) in retirement?

UN chief urges restraint following reported Saudi-led assault in Yemen

This is how Britain saved some of its most precious wildlife from the threat of extinction

5 reasons why biodiversity matters – to human health, the economy and your wellbeing

Brexit uncertainty keeps shaking the world’s financial markets

The EU Parliament backs the ‘Right2Water’ initiative all the way through

Mental health apps: Help is just within a pocket reach

Libyan national conference postponed, nearly 500,000 children at ‘direct risk’ from fighting around Tripoli

Coronavirus: First case confirmed in Gulf region, more than 6,000 worldwide

Silicon Valley can do more to achieve the #GlobalGoals

How Finland is fighting fake news – in the classroom

The vital role played by logistics during humanitarian crises

Venezuela: Parliament recognises Guaidó, urges EU to follow suit

Learning from our past mistakes: the mental health burden of two pandemics

The priority for workplaces in the new normal? Wellbeing

5 ways to fast-track the transition to a carbon neutral world

Getting African Women into the Boardroom

Political agreement on new Common Agricultural Policy: fairer, greener, more flexible

5 crises that could worsen under COVID-19

Why vaccines are not just for children

Switzerland fast-tracks emergency aid for small businesses weathering COVID-19

Colombia: Rights experts condemn killing of reintegrated former rebel fighter, call for respect of peace process

Fair and equal social protection for riders, drivers and other platform workers

Why the ECB prepares to flood the markets with more and free of charge euro; everybody needs that now

FROM THE FIELD: Weeding out Mexico’s unwanted beach invader

‘You can and should do more’ to include people with disabilities, wheelchair-bound Syrian advocate tells Security Council in searing speech

Inside my COVID-19 Diary: is the youth mental health still intact or fractured?

Business could learn plenty about cybersecurity from the secret state

Eurozone officials play with people’s deposits and minds

To solve big issues like climate change, we need to reframe our problems

Will 2020 be the year blockchain overcomes its hype?

Everything you need to know about the coronavirus

Data marketplaces can transform economies. Here’s how

New committees begin their work

In Tokyo, UN chief expresses full support for US-Japan dialogue with North Korea

Over 40 million people still victims of slavery

How fake news still makes it difficult to cope with coronavirus

Syria: UN-backed watchdog says chemical weapon ‘likely used’ in February attack

Ghana will grow faster than any other economy this year, the IMF says why

UN humanitarian coordinator condemns Central African Republic hospital attack as ‘inhuman and unworthy’

How can you or your organization support the Hour of Pride initiative?

Election 2019: New, Updated seat projection for new Parliament

Why CFOs need to rethink what it means to create value

Much more than a ‘lifeline’ for millions of households, remittances can spur global growth, says UN agency

Here’s how India can soar in the Fourth Industrial Revolution

5 ways to boost sustainable trade in the world’s poorest countries

It’s a lie Eurozone isn’t competitive

There is no recipe for a healthy mental state

Promoting gender equality a ‘crucial contribution’ in effort to restore, protect our planet’s oceans

Mental health in primary care: a unique therapeutic project

Zimbabwe ‘facing worst hunger crisis in a decade’

The West is struggling to hit its climate targets. What would the developing world do differently?

7 chief economists on how to solve the pandemic’s labour market paradox

COVID-19 Wave III – What did we learn?

Mass measles vaccination campaign begins in Ebola-hit DR Congo province

Climate Change: A Healthcare Emergency

Erasmus+ and its predecessors: a life-changing experience for 10 million young Europeans

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

%d bloggers like this: