Manufacturing Review



London’s Canary Wharf area, where many financial firms are based. Brexit is changing how banks in Britain do business in the European Union.  The bloc is updating its rules for cross-border securities trading and won’t grant Britain a stamp of approval until the revision is completed in the middle of next year. That stance spurred an outraged response from none other than the governor of the Bank of England, Andrew additional info Bailey, who in September complained to members of Parliament about Brussels’s behavior. “I just do not see how we can have an equivalence process where the E.U. essentially says, ‘We’re not even going to judge equivalence at the moment, because our rules are going to change,’” Mr. Bailey said. “What does that mean, really? It means that they think this is a rule‑taking process.” (The accusation of “rule-taking” is often the ultimate put-down in these talks, meaning that one side is dictating rules to the other.) The disharmony is underscored by the fact that, unlike the rules that governed pre-Brexit, these regulatory decisions are made unilaterally and can be revoked with short notice. The lack of agreements mean London will lose financial jobs as a result of Brexit. Even before the year-end deadline, E.U. regulations are compelling banks to shift workers, and capital, to the continent. The movement of decision makers is important: In the event of a crisis, Europe’s bank overseers don’t want critical people to be somewhere offshore, even if it’s London.