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World

UK's financial sector reels after Brexit

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Opening sequence

World

UK's financial sector reels after Brexit

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COMING UP:UK's financial sector reels after Brexit

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Transcript

00:00:00
>> After Brexit, a brutal day for banking stocks. With job security fears rising to levels not seen since the 2008 financial crisis, rumors are rife. US investment bank, Morgan Stanley, forced to deny claims it's begun moving 2,000 investment banking staff from London to Dublin or Frankfurt. As U.K. banking correspondent Lawrence White explains, the mood in London is grim.
00:00:25
>> The biggest worry in the city right now is jobs. Britain has some 2.2 million workers in its financial industry, and there's no doubt that some of those jobs will be lost, particularly as some banks would move trading operations to other parts of Europe. So the focus now if you're a senior manager at one of these banks is to talk to your staff, many of whom will be worrying that they're about to lose their job.
00:00:45
>> Shares in the top five British lenders all dropping in double digits, with Barclays suffering its worst ever loss. The Brexit blow sending ripples across the channel too, some European banks falling even more than their British peers. Deutsch bank shares fell by 20% when the market opened.>> I think the initial mood was shock.
00:01:05
Financial markets were pricing in a remain vote. So whilst there are some who saw this coming, many of the bankers that we've spoken to were surprised by the result. The focus for them then really shifted to, okay, how do we deal with this? And there's no doubt that the overwhelming sentiment is grim.
00:01:23
But bankers are trying to be pragmatic and saying, okay, how do we weather this shock, in the same way that the city of London has weathered previous financial crises?>> All depends on the divorce between Europe and Britain, and the UK's ability to retain access to the European free market and cope with market volatility.
00:01:40
Bank CEOs out in force on Friday, emphasizing their extensive contingency planning. But for now at least, that message is having little impact.