US banks warned of hard Brexit

Author: Edward Price | Published: 13 Oct 2016

Policymakers, counsel, regulators and industry participants have gathered in New York to discuss the global challenges facing US financial services. The disruptive legal and market effects of Brexit are prominent concerns – especially for US banks – with a hard Brexit now looking increasingly likely.

On June 23, the UK referendum on the country’s EU membership returned a vote to leave the 28 member state bloc. To enact that course, the UK must first trigger article 50 of the Lisbon Treaty - this looks set to occur in the first quarter 2017, after which there will be a round of EU-wide negotiations on the exact terms of the UK’s exit. For US counsel and banks, the core issue is whether the UK will retain access to the EU’s single market. That option, known as a 'soft Brexit’, is the alternative to a 'hard Brexit’, one that will feature little to...