London May Lose to New York After Brexit, Bundesbank Warns
- Cities in U.S. and Asia may benefit from U.K.’s EU departure
- Executive Board member Wuermeling speaks in Frankfurt
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The U.K.’s exit from the European Union will be a watershed moment for the City of London and weaken its role as one of the world’s leading financial centers, Bundesbank Executive Board member Joachim Wuermeling said on Thursday.
Speaking in Frankfurt, he predicted Brexit would lead to higher costs for European companies by reducing the range of available financial services, weaken productivity and reduce market depth. There is also no guarantee that Britain’s departure from the EU would spur an exodus of banks to the continent, he said.