We’ll leave Britain if Brexit deal isn’t right, warn banks

EASTLEIGH, UNITED KINGDOM - MAY 23: Chancellor of the Exchequer George Osborne delivers a speech on the potential economic impact to the UK on leaving the European Union (EU), at a B&Q Store Support Office, on May 23, 2016 in Chandler's Ford, near Eastleigh, England. Osborne warned that Brexit would lead Britain into a 'year-long recession'. (Photo by Daniel Leal-Olivas - WPA Pool/Getty Images)

RBS chief Sir Howard Davies has issued a warning to Prime Minister Theresa May that banks may leave Britain unless she secures the right deal over Brexit.
The finance boss said that American and Japanese banks were hugely concerned over the potential of a hard Brexit and were already drawing up plans to leave the City of London if they feel staying does not make financial sense.
Sir Howard, who heads up the still taxpayer-owned RBS, is now urging Mrs May to come forward with reassurances for the City.
He wants her to negotiate a transition deal to allow firms in Britain to continue to operate in the rest of the Europe.
Sir Howard’s demands follow talks Mrs May’s government has held with the car industry. Following high level talks with Nissan, the Japanese motoring giant said it was convinced by reassurances and would now be building its two latest models in Sunderland, in the North East.
Sir Howard said that if a transitional deal was not secured, jobs could move from Britain to Ireland and elsewhere in Europe.
“I think it is damaging if we don’t get a transitional deal because I think you will then see banks and financial institutions making decisions on the basis of uncertainty,” he explained.
“They will not wait because they have to make a decision which will allow them to be, to continue to function in the event of a hard Brexit if that’s a possibility.”
“So they will not sit back, they are currently making contingency plans and once you’ve got a contingency plan – hey, there is a risk you might implement it one day.And therefore I think that it is quite urgent.”
Banks and other financial firms are worried that if they lose membership of the single market, they will no longer be able to operate in the same way across the European Economic Area.
While Mrs May has previously spoken about concerns that she might reveal her hand to Europe if she outlines Britain’s negotiating strategy for Brexit, Sir Howard said financial institutions were not expecting to be told about negotiations in great detail. What he said, however, was that they needed reassurance that there would be no “jerky and sudden” divorce from the EU. Anything too sudden, he said would have a destabilising effect on financial institutions and the wider economy.

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Sam Dunis
Sam comes from Edinburgh and grew up with his mother and step-dad. His father left the country when he learnt he was going to be a father. Sam never had the opportunity to see him and still wonders what he looks like. School wasn’t his thing, he would rather spend sometime with his friends, play rugby and chat girls up. Sam used to help his step dad, a plumber, during summertime. After doing it for several years, he realized he could work with his father and hopefully take over the family business when his step-father would retire. Sam spends most of his time off taking care of his mother, training with the local rugby team. Sam doesn’t have any girlfriend at the moment. He is therefore going out every weekends.