MPs to grill City bosses over Brexit claims

WEB_0916_news digest_flagThree major City bosses face a grilling from influential MPs over suggestions financial services firms have exaggerated the risks posed by Brexit.

HSBC chairman Douglas Flint, London Stock Exchange boss Xavier Rolet and Elizabeth Corley, vice chairman of asset manager Allianz Global Investors, will appear before the Treasury select committee tomorrow, the Telegraph reports.

It is understood MPs will investigate whether UK banks and asset managers have exaggerated the likely impact of Brexit on the City as a way to push the Government agenda towards prioritising the financial services industry in the negotiations with Brussels.

The news comes as last week Bank of England chief economist Andy Haldane said economists are “to some degree in crisis” after failing to foresee the 2008 financial crisis and the impact of the Brexit vote.

In the days following thew EU referendum, HSBC was reportedly said it could move 1,000 staff from its London office to Paris.

Among others, Morgan Stanley, BNP Paribas and JPMorgan have also reportedly made plans to reduce their UK operations following the vote to leave the EU.