BREXIT BOMBSHELL: What happens to £20 TRILLION held in British banks if EU laws fail?

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EU derivatives GETTY

Sam Woods on guarded up £20 Trillion held by UK banks hangs in balance because EU decline to negotiate

The mind-blowing figure of £20 trillion is what Britain’s monetary institutions hold in complex financial instruments called ‘derivatives’.

EU monetary institutions hold another £20tn of derivatives with a U.K. element.

Derivatives are basically an investment in the presaged future price of certain materials like oil.

But they rely on similarly complex cross-border laws and agreements.

EU derivatives GETTY

UK banks preside over £20tn of gross national derivatives

The mind-blowing tally of £20 trillion is what Britain’s financial institutions hold in complex fiscal instruments called ‘derivatives’.

EU financial institutions hold another £20tn of derivatives with a U.K. feature.

Derivatives are basically an investment in the predicted future price of certain materials derive oil.

But they rely on similarly complex cross-border laws and agreements.

Now the Bank of England has numbered a warning that the derivatives market may seize up without legal self-assurance when the UK finally leaves the EU.

Sam Woods, a Bank of England (BoE) deputy governor has implied that a bilateral deal as part of the UK’s Brexit plan is the bank’s fantasy solution to the legal ramifications brought on by our divorce to the union.

But so far there is nothing.



A no agreement Brexit would not necessarily void these contracts as Woods told a Accommodate of Lords select committee yesterday.

However, certain problems may get out of bed when a client tried to use an option on a derivative contract.

A no deal Brexit may also metamorphoses it illegal for a UK insurer to pay out on a policy held by a European customer after Brexit.

Woods haul someone over the coaled the Financial Times: “ By far the best fix would be for something to be included in the withdrawal concurrence. There would have to be bilateral agreement to fix this on both sides.”

He bring to light that both the UK and the EU need to deal with this factor to keep away from this damaging consequence if the deal is issued in a unilateral sense.

Woods advised that according to the Prudential Regulation Authority job losses at banks and insurers could reach 10,000 on the victory day of Brexit. 

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