The Financial Risks of a Disorderly Brexit

The video discusses three main challenges the financial system could face due to a disorderly Brexit. These include EU money managers potentially losing access to London exchanges, legal uncertainties around UK-EU swap contracts, and disruptions in the European payment sector. The video questions whether these issues could destabilize Europe's financial system or if they are manageable, similar to the Y2K scare. Brexit's impact on Europe's financial landscape could be significant and long-lasting.

What is one potential issue for EU-based money managers due to Brexit?

• They will lose access to EU clients.

• They will need to relocate to the UK.

• They will have to pay higher taxes.

• They might be blocked from using London exchanges.

What is a major concern regarding swap contracts between UK and EU traders?

• They will be subject to new tariffs.

• They will require approval from both governments.

• There is uncertainty about how they will be serviced.

• They will become invalid after Brexit.

What process are banks undergoing to manage swap contracts post-Brexit?

• Rebranding their services.

• Switching contracts to new EU entities.

• Hiring more legal advisors.

• Reducing the number of contracts.

How will Brexit affect the European payment sector?

• UK firms will gain more business in the EU.

• UK firms will lose the ability to automatically do business in the EU.

• EU firms will need to establish offices in the UK.

• There will be no impact on the payment sector.

What is the overall question regarding the impact of Brexit on Europe's financial system?

• Will it cause Europe's financial system to unravel?

• Will it improve trade relations?

• Will it lead to a financial boom?

• Will it have no significant impact?