The biggest threat to the City of London is now uncertainty

Uncertainty is now the biggest threat to the City of London, writes Simeon Djankov. It is not simply a question of whether changes to financial regulation will deter business, but whether the government can deliver on its promises to cut corporate taxes, reform immigration while letting in talent and make corporations more transparent without putting off foreign investors. In this extract from a new paper, he looks at the effect Brexit will have on banking, (re)insurance, asset management and clearing.