Jun
27

Carney’s Warnings Ring True as Brexit Slams U.K. Banking Stocks

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  • BOE panel meets as more cheap cash offered to lenders Tuesday
  • Bank stocks have posted biggest 2-day decline since 2009

Mark Carney’s warnings that Brexit could inflict a fresh crisis on the U.K.’s banking sector may be coming to pass, and it’s up to him to try stop it.

As the Bank of England governor chairs a meeting of financial stability officials on Tuesday, the industry they oversee has been battered by investors. Britain’s vote to leave the European Union has ripped through markets, with U.K. bank stocks suffering their biggest two-day decline in seven years.

Carney cautioned months ago that the referendum was the “biggest domestic risk to financial stability” and said in May that a Brexit vote could lead to a recession, comments that proved controversial in a vitriolic political battle. The remarks also signaled he wasn’t taking any chances with the strength of the BOE’s planned defenses against a referendum fallout…

Carney’s Warnings Ring True as Brexit Slams U.K. Banking Stocks

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