London will remain an important banking center if the United Kingdom votes to leave the European Union, but it will no longer be a practical European headquarters for international banks. Banks anticipating a Leave vote have started to make contingency plans to close facilities and lay off staff. European operations centers could move from England to smaller EU countries bordering on Germany. Banks are also prepared for market turbulence immediately following the vote.
The Russian economy appears to be stabilizing, with forecasts calling for slight growth next year, enough to reverse a slight decline this year. There has been no major fallout from the various extreme measures the government took to stabilize the banking system.
Large foreign banks that have a smaller presence in the United States can file simplified resolution plans under new rules announced by the FDIC. In essence, a foreign bank can reuse its 2015 plan, redoing the plan only as the bank’s footprint changes.
