European Banks Lose Billions in Value after Brexit Results
European banks are already experiencing the impacts of the United Kingdom’s (UK) referendum to leave the European Union (EU). Global markets have been down since the results of yesterday’s vote were released, with the British Pound falling to the lowest levels seen in more than three decades. Further adding to uncertainty, Prime Minister David Cameron announced that he would step down from his position.
In response, major European banks have seen shares fall 10 to 30 percent today, losing more than £40 billion in value. Senior leadership has expressed deep concern with what the future holds for their firms. Analysts expect European currencies and bank shares to continue to fall in the short-term; they’re also predicting an exodus of banking staff out of the UK.