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Sir Meryvn King, Governor of the Bank of England has warned British businesses that they must prepare for a post euro world. As the Chair of the interim Financial Policy Committee, the Governor said: "In the UK, we must try to bolster the resilience of our financial system to better withstand the storms that may come in our direction." With negotiations in Europe on-going and Angela Merkel pushing for greater fiscal unity and everyone else seemingly pushing against that at this time, there is a very real chance that the euro area will have to break up. If that were to happen I would anticipate it was a result of at least Greece, may be Portugal, Italy or even Spain having defaulted on their debts. At this stage do we know which of our British banks or other banking financial institutions that are big employers in the UK have exposure to these debts and what impact it would have on their viability? The previous credit crunch was a breakdown in the banking sector flow of finance, this it would appear is another level again. If Sovereign debts start to default, the euro zone breaks up, I do wonder what impact this will have on the UK, and with our banking financial center being London, what impact on the London banking job market?
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