Britain Will Lose $1 Trillion Because Of Brexit

Banks and other financial companies have shifted at least £800 billion ($1 trillion) worth of assets out of the country and into the European Union because of Brexit.

Many banks have set up new offices elsewhere in the European Union to safeguard their regional operations after Brexit, which means they also have to move substantial assets there to satisfy EU regulators. Other firms are moving assets to protect clients against market volatility and sudden changes in regulation.

According to CNN companies have already created around 2,000 new jobs elsewhere in the European Union in response to Brexit.Deutsche Bank (DB), Goldman Sachs (GS) and Citi (C) have already moved parts of their business out of the United Kingdom. Dublin, Luxembourg, Frankfurt and Paris were the most popular destinations.Companies are also likely to move more assets and create more jobs in other European cities over the coming weeks.

London has been Europe’s undisputed financial capital for decades, and is home to the international headquarters of dozens of global banks.The financial services industry employs 2.2 million people across the country and contributes 12.5% of GDP. It generates $100 billion in tax revenue each year.

Britain is scheduled to leave the European Union in just 81 days.

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