Corbyn Government as Bad for Banks as a Hard Brexit, Citi Says
- Election of Labour would spur capital outflows, analysts say
- Domestic lenders to fall most as global banks hold firm: Citi
Jeremy Corbyn
Photographer: Anthony Devlin/Getty Images
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Jeremy Corbyn being elected U.K. prime minister would be just as damaging to British banks’ profits as the country crashing out of the European Union without a withdrawal agreement, according to Citigroup Inc.
While London-listed bank stocks have recovered from last year’s lows as the risk of a “no-deal Brexit” gradually subsides, a snap election is becoming more likely as lawmakers in Westminster remain unable to agree on a future relationship with the EU. Citigroup’s review of Labour Party pledges doesn’t bode well for the financial sector.