Wednesday, June 15, 2016

'BREXIT TSUNAMI' UK exit would cause 'BIG problems' for GERMAN banks, watchdog warns

IF Britain votes out of Europe, Germany's biggest banks would suffer a huge hit that would shake the eurozone's financial system to its core, a top policymaker in Frankfurt has admitted.

 Felix Hufeld
GETTYBrexit would hurt German banks, said Felix Hufeld
The desperate head of Germany's financial watchdog Bafin said he wants the UK to remain in the union and is worried about how his country's banks would cope otherwise.

German firms such as Deutsche Bank AG and Commerzbank AG have a large exposure to London and would be faced with big problems in a Brexit, revealed Felix Hufeld in an interview with German newspaper Tagesspiegel.

Mr Hufeld said the banks were now assessing the consequences of leaving and how their business dealings would be affected.

The president of Bafin said the European Central Bank (ECB) is also planning to closely monitor the situation.

But Mr Hufeld warned if Britain doesn't vote to remain "[Germany's] biggest banks would have the biggest problems… They have the most activities in, and with, London."
It came as Swiss financiers described the Brexit effect as a 'tsunami.'
Chief economist, Alan McQuaid at Merrion Capital Group Ltd spoke of Brexit as a "game-changer" on Swiss banks.Swiss National Bank President Jordan warned back in April that a so-called Brexit would cause “enormous stress” in Europe.
Support for the Leave campaign has surged in the final days ahead of the June 23 referendum, with out now taking a 19 point lead.

In a separate interview with German paper Bild, Donald Tusk, president of the European Council, unleashed comments designed to scare Britain into voting remain.

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