TELETRADER News
4/2/2019, 7:49 PM (Source: TeleTrader)
more TeleTrader news

Fitch says big US banks may withstand Brexit

Lenders based in the United States have for the most part adapted for the United Kingdom's departure from the European Union, Fitch Ratings wrote in a report published on Tuesday. The firm's analysts asserted the big banks are "well prepared for any potential outcome" and expressed belief there would be no impact on credit or grades. The agency added the risks from a possible withdrawal without an arrangement with the administration in Brussels are "mainly secondary" and highlighted potential volatility and larger rate spreads.

The entities designated in the US as global systemically important banks have largely tackled legal and licensing issues in the UK and the EU, according to the credit appraiser, which noted the clearing segment is covered by a transitional deal. British banks are under watch with negative implications at Fitch. It said in the update that American financial organizations have focused on Dublin, Paris and Frankfurt for the transfer of operations. However, the migration is weaker so far than in most scenarios.

Bank of America Corp., Bank of New York Mellon Corp., Citigroup Inc., Goldman Sachs Group Inc., JPMorgan Chase and Co., Morgan Stanley, State Street Corp. and Wells Fargo and Co. are all active in both markets.

Breaking the News / IT