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.




















Featured Stings

Water supply a human right but Greeks to lose their functioning utilities

How many more financial crises in the West can the world stand?

Azerbaijan chooses Greek corridor for its natural gas flow to EU

Why Eurozone’s problems may end in a few months

Volkswagen scandal update: “We want clarity fast, but it is equally important to have the complete picture”, Commission’s spokesperson underscores from Brussels

European Confederation of Junior Enterprises hosts in Geneva the Junior Enterprise World Conference

A day in the life of a refugee: the role of nations and citizens of the world

The 27 EU leaders did nothing to help May unlock the Brexit talks

German elections: Is Merkel losing ground or Shultz is winning?

Copyright: European Union , 2017; Source: EC - Audiovisual Service; Photo: Frank Molter

EU hits deadlock on the future of glyphosate a month before deadline

Jade Spring Meeting 2017 – day 2: Coporate workshops, general assembly and magna moment

COP21 Breaking News: Conference of Youth Focuses on Hard Skills to Drive Greater Climate Action

The three US financial war fleets

Can the EU afford a trade war with China?

Why do medical students need to emigrate to become doctors in 2017?

Trump badly cornered at home by agribusiness and steel consumer lobbies: Trade

Draghi’s top new year resolution: Quantitative Easing

Eurozone: Inflation plunge to 0.4% in July may trigger cataclysmic developments

A rapid deterioration of the humanitarian situation in the war-torn Yemen

From Grexit to Brexit: UK industry now says the in/out referendum is good for your health

On Human Rights Day European Youth Forum calls for end to discrimination of young people

The European Youth Forum needs better signal for its “call” for Quality Internships

Counting unemployment in the EU: The real rate comes to anything between 16.1% and 20.6%

Opening Remarks by H.E. Ambassador Yang Yanyi, Head of the Chinese Mission to the EU at the Chinese Fashion Night

The EU Commission does nothing about the food retailing oligopoly

Eurozone: How safe are our deposits? Which banks will survive?

Eurozone banks to separate risky activities: Can they stay afloat?

The EU Parliament endorses tax on financial transactions

The US + Britain trivialize mainland Europe, NATO and the EU

Lithuania vs Parliament over 2014 EU budget

The US may be “open” to reviving TTIP, while the EU designs the future of trade with China

Schengen is losing ground fast revealing Europe’s clear inability to deal with migration crisis

German stock market is not affected by the Greek debt revolution while Athens is running out of time

EU will not deliver on promises without democratic accountability

China revisited by the former Ambassador of Hungary to China

The West castigates Turkey’s Erdogan for the ruthless political cleansing

Eurozone has practically entered a deflation trap

A Sting Exclusive, the European Commissioner for Energy Günther Oettinger writes for the Sting on “EU Industry: a major energizer”

Greece: The new government of Alexis Tsipras shows its colors

Managers’ pay under fire

Why Eurozone can afford spending for growth

EU Commission says falling labour remuneration leads to deflation and damages growth prospects

Mario Draghi didn’t do it but Kim Jong-un did

E-Government can be a remedy for the crisis

Education expenditure in the EU not hurt much by crisis

The EU Parliament slams Commission on economic governance

EU is now giving Google new monopolies to the detriment of European citizens and Internet companies

EU Commission: Banking and energy conglomerates don’t threaten competition!

How will Brexit affect higher education in the EU?

Eurozone’s bank resolution mechanism takes a blow

UK’s PM Theresa May asks for a two-year Brexit transition plan as negotiations round kicks off

Twenty days that may remold the future of Europe

France and Poland to block David Cameron’s plans on immigration

A new proposal breaks the stalemate over the Banking Union

Can the EU last long if it cuts Cyprus out?

UN Environment Assembly 2017: where the world convenes to #BeatPollution

The UK to split if May’s hard or no-deal Brexit is pursued

Finally an answer to the hottest question of European youth today: How to make sure Juncker’s Investment Plan works for youth

IMF – World Bank meetings: US – Germany clash instituted, anti-globalization prospects visualized

China Unlimited: the dragon’s long and winding road

More Stings?

Speak your Mind Here

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

You are commenting using your 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 )

Google+ photo

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

Connecting to %s