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Barclays Closing the Accounts for Ex-pats.

Discussion in 'General Discussion' started by Bobby Dazzler, 11 Sep 2020.

  1. SirGalahad

    SirGalahad

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    LCH does about 90% of the clearing. The negotiations about Clearing are not part or dependent upon the WA. The EU will use this 18 month space to reduce their exposure to London. What people still underestimate is that London strength lies in its financial prowess backed by its strong courts (this is being undermined by Bojo IMB).

    The EU will start to wind down their exposure by derecognising clearing centres. Emir 2.0 says Hi.
     
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  3. SirGalahad

    SirGalahad

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    lol. So wrong its laughable. Sputnk news - are you a Russian Tory Bot? :p
     
  4. EddieM

    EddieM

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    It would take a hell of a lot longer than 18 months to make much of a difference, not that's it's not doable, but it wouldn't be quick.

    Additionally LCH is majority owned by LSEG, which is also currently attempting to by Refinitv, one of the largest financial info providers in the world.
     
    Last edited: 21 Sep 2020
  5. fillyboy

    fillyboy

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  6. fillyboy

    fillyboy

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    I'm not convinced it is doable, or even legal for that matter.
     
  7. SirGalahad

    SirGalahad

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    Whats not legal?
     
  8. EddieM

    EddieM

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    No idea why it would be illegal? I suppose the UK could declare it illegal to clear funds through an EU clearing house... Maybe?

    Well, I'm sure it's doable, but it's a big effort. London's been a clearing centre of excellence for centuries.
     
  9. SirGalahad

    SirGalahad

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    There are 2 points to this - which clearing centres are recognised so EU banks can use them and the regulation / supervision under which these third country Clearing centres will operate under.

    There is an internal struggle of whether to force EU banks only to clear through EU based CC or let them use third country CC under strict regulation. In either case London is weakened - we either lose control and have to comply or we lose business.

    Within three years I suspect we will lose business.
     
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  11. fillyboy

    fillyboy

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  12. JohnD

    JohnD

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    The Brexit omnishambles will be sooner than that.
     
  13. Mottie

    Mottie

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    I’m confused. When I was an expatriate in South Africa for just a year, I opened a South African bank account. That was in 1982. Why can’t ex-pats open a bank account in the European country of their domicile in 2020?
    You hope!
     
  14. EFLImpudence

    EFLImpudence

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    They can.
     
  15. EFLImpudence

    EFLImpudence

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    I think it is still not clear what exactly Barclays are actually doing and why?

    Is it people's whole accounts that are being closed or does it just relate to the Barclay Card - the credit card?

    Barclays used to have branches here but they closed them. I had assumed it was because of internet banking which made them unnecessary.

    After all, were I a multi-millionaire, would Barclays not be pleased to look after my money even though I live here?
     
  16. JohnD

    JohnD

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    If they are a bank that does not have passporting rights to operate in the country where you now live, they might calculate that it would be too difficult and expensive to obtain a banking licence in that country, and provide banking services in a foreign country to residents of that country.

    That appears to be the decision process that the banks are going through.

    Their passporting rights will expire at 11pm on 31st December 2020 (UK time) and the UK government has not agreed alternative arrangements with the EU.

    "Brexit strips expats of UK bank accounts
    Lloyds and Barclays say without a deal they cannot afford to keep EU-based customers"

    https://www.thetimes.co.uk/article/brexit-strips-expats-of-uk-bank-accounts-565bsvn6k

    "Tens of thousands of Britons who live in Europe are to be stripped of their UK bank accounts and credit cards within weeks, because the government has failed to negotiate post-Brexit rules.

    A number of the biggest British banks, including Lloyds, Barclays and the Queen’s bank, Coutts, have started writing to expatriates to say they will stop serving them when the withdrawal agreement ends at 11pm on December 31.

    Without a continuation of crucial pan-European banking rules, known as passporting, it will become illegal for UK banks to provide for British customers in the EU without applying for new banking licences"
     
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  17. EFLImpudence

    EFLImpudence

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    I am not sure what exactly 'passporting rights' means - but

    if the account is in the UK and accessed through the internet is it not just subject to UK law?

    Plus, if you have a UK address but never live there, how does that make it any different?
     
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