UK finance boss says no deal Brexit would be a ‘catastrophe’ for banks

UK finance boss says a no deal Brexit would be a ‘catastrophe’ for the banks as bad as the Great Depression of the 1930s

  • Stephen Jones said jobs would be lost if Britain ‘crashes out’ without agreement
  • The CEO of UK Finance described no deal as ‘social and economic catastrophe’ 
  • Said he did not want to be ‘doom-monger’ but warned of a historic contraction  

Stephen Jones, the chief executive of UK Finance, said jobs would be lost and people would be unable to pay their mortgages if Britain ‘crashes out’ of the EU without an agreement. He is seen today on Channel 4 News

A no-deal Brexit would be an economic and social ‘catastrophe’ as bad as the Great Depression of the 1930s, the head of the trade body for the banking industry has warned.

Stephen Jones, the chief executive of UK Finance, said jobs would be lost and people would be unable to pay their mortgages if Britain ‘crashes out’ of the EU without an agreement.

‘A no-deal Brexit on 29 March, where we crash out of the European Union, is a catastrophe,’ he told Channel 4 News.

‘It’s a social catastrophe, it’s an economic catastrophe. And by implication it is a catastrophe for the industry I represent, the banking industry.

‘This is about jobs, this is about people not being able to pay their mortgages, not being able to pay back their loans, and that’s really bad news and it’s an outcome we can avoid.

‘I don’t wish to be labelled a doom monger – and our industry’s job is to cope with whatever circumstances are thrown at us, as best we can – but if our economy contracts by 10% that’s 1930s-style contraction.

‘That is a massive increase in credit card losses, mortgage losses, vehicle loan losses.’

On the eve of the crucial Commons vote on the Withdrawal Agreement, Mr Jones said he did not believe it was a ‘great deal’ but said he was concerned about the consequences if it was rejected.

‘I think there is a real risk of no-deal happening by accident. If the Prime Minister’s deal is voted down, we are in totally uncharted territory,’ he said.


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‘It’s not a great deal, there’s an awful lot of money being paid for a political declaration, which quite frankly is not worth the paper it is written on.’

Mr Jones said the position of the City of London had already been diminished by the referendum vote to leave the EU.

‘London as the European financial centre appears to most of us to be – frankly, quietly – over,’ he said.

‘We’ll do our best to retain what we can, within the context of what’s negotiated, no-deal or a deal, but Frankfurt and Paris will become much more important financial centres in a European context.’

He made the claim even though London employs more senior bankers than the rest of the Europe combined. 

Mr Jones said there was a danger of no deal ‘happening by accident’ if Mrs May’s deal is voted down. The Prime Minister is pictured today in the Commons 

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