UK PM assuages US financial fears

Theresa May, the Prime Minister of the United Kingdom, held private talks with major US financial institutions, including banks on September 19 to understand the issues that the latter wants to be solved. All issues are related to Britain’s exit from European Union or BREXIT as it is popularly known. She assured them that this event will not harm their businesses in the United Kingdom. 

Prime Minister May met mostly CEOs from finance sector. There was a smattering of senior figures from the entertainment and technology sectors as well. The meeting was held at the British consul general’s residence in mid-town New York on September 19. Two gatherings were held by the Prime Minister. The first consisted of a round table discussion with a number of American investors who have made substantial investments in the United Kingdom. The list included Goldman Sachs, Amazon, Morgan Stanley, IBM and BlackRock. The second gathering consisted of a reception for approximately 60 American executives. It also included a number of British businesses which have invested in the United States.

These events are essentially a listening exercise for the Prime Minister and Boris Johnson, her foreign secretary. The latter has accompanied her to New York. They wanted to hear first-hand the views of investors and business leaders on the priorities that Britain should have during its BREXIT negotiations with European Union. The PM’s office has given indications that such talk will happen in 2017. 

The meetings are particularly valid when US concerns over the legality of American companies based in City of London when they will operate from the British capital after exit. Banks which are headquartered in the United Kingdom at present have the “passporting rights” to operate in any geographical region located within the European Union.

Philip Hammond, the chancellor under May’s Prime Ministership, has made passporting his contral focus when it came to renegotiation goals set by the Treasury. European leaders, however, have warned that they will not permit London to continue its exalted existence as the financial center of the EU after exiting the bloc.

Prime Minister May is expected to initiate Article 350. It will formally begin the negotiating period during the early months of 2017. May will also attend a number of initiatives at UN General Assembly. She is expected to announce a number of initiatives to fight modern day slavery and human trafficking.

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