U.K. Regulators Said to Discuss Brexit Turmoil With Bankers
Carney, Regulators Said to Discuss Brexit Turmoil With Bankers
(Bloomberg) -- The Bank of England and other regulators discussed the pound’s plunge and other market turmoil triggered by resignations from Prime Minister Theresa May’s government with about 10 City of London institutions on Thursday, according to a person briefed on the talks.
Executives from the big four U.K. banks -- Barclays Plc, HSBC Holdings Plc, Lloyds Banking Group Plc, and Royal Bank of Scotland Group Plc -- were involved in the calls, said the person, who asked not to be identified talking about a private meeting. So, too, were representatives from London Stock Exchange Group Plc and major investment-management firms.
The Financial Conduct Authority and BoE’s Prudential Regulation Authority, which are charged with ensuring the stability of the British financial system, wanted to touch base on a day when May’s draft agreement for Brexit triggered a political crisis in Westminster that could unseat her.
Shares in British banks fell sharply today, with RBS’s stock closing down 9.6 percent, its steepest dive since the Brexit referendum itself in June 2016. Lloyds shares dropped 5 percent and Barclays stock slipped 4 percent. Reuters first reported the conference call earlier today.
RBS, HSBC, LSE and Barclays declined to comment, while Lloyds didn’t immediately reply to a request for comment.
--With assistance from Viren Vaghela.
To contact the reporter on this story: Edward Robinson in London at edrobinson@bloomberg.net
To contact the editors responsible for this story: Ambereen Choudhury at achoudhury@bloomberg.net, Keith Campbell
©2018 Bloomberg L.P.