Financial safety

Financial hub in fear of EU exit

From the international banks in the skyscrapers of Canary Wharf to the traditional home of Britain's financial industry in the city of London and the hedge funds of Mayfair, bankers and money managers across the capital await the June 23 referendum on EU membership with trepidation. Many fear a vote to leave would undermine London's position as the world's pre-eminent financial center and damage an industry that underpins the British economy.

Jamie Dimon, chief executive of U.S. banking giant JPMorgan Chase, underscored those concerns recently when he appeared alongside United Kingdom Treasury chief George Osborne to make the case for remaining part of the EU single market, which has 500 million people and is the world's biggest economy. In case of a British exit from the EU, JPMorgan would have to move staff members to the continent to ensure it could continue to serve clients who want to invest there, Dimon said. Other global banks with customers in the rest of the EU would be in a similar situation.

"A vote to leave would be a terrible deal for the British economy," he said. "At a minimum, a Brexit will result in years of uncertainty, and I believe that this uncertainty will hurt the economies of both Britain and the European Union."

Britain has been the gateway to the EU for many banks, brokerages and fund managers for decades. In addition to having a trusted legal system and institutions that operate in English, the language of international finance, London is in the right time zone to access most of the earth during its working day and has a reputation for delivering top-notch financial services. The industry is also surrounded by an ecosystem of expertise -- lawyers, accountants and consultants -- to support it.