Bankers 'could leave London'

8 April 2011

Bankers located in London could leave the capital and the impact felt would be minimal, new research has suggested.

Carried out by Reuters, the study claimed the Independent Commission of Banking would be in a strong position to counter any threats of moves to New York or Hong Kong as the economy, government finances and London's standing as a financial centre would not be overly affected by such developments.

Speaking to the news agency, Andrea Leadsom, a Conservative member of the Treasury Select Committee, said any talk of a walkout from the city may have been blown out of proportion.

She noted: "I think it's unlikely ... that any one bank will move offshore and if they do move what that means for tax take will depend on the bank involved."

Ratings agency Moody's recently suggested that a number of UK banks could soon face a ratings cut, as it noted such changes would reflect the lower chance of a future government bailout.

By Asim Shah

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