Handelsblatt: Morgan Stanley CEO Warns of ‘Considerable’ Impact of Brexit

01 April 2016

Morgan Stanley’s chief executive has added his voice to warnings that a British exit from the European Union would have “considerable” consequences for London’s role as a global financial center.

James Gorman, in an exclusive interview with Handelsblatt, said he still had confidence that “common sense would prevail and the British people would choose to remain in the 28-nation economic bloc.

“As a firm, we support the U.K. staying in the E.U., which we think would be good for the country and good for Europe,” Mr. Gorman said. ” If I might be allowed to flatter the British a little, I would say that they have shown an unusually high level of common sense throughout history and I hope that they will prove that again this time.”

Asked how serious the damage of a “Brexit” would be to London, Mr. Gorman responded: “Considerable. Certainly some business would migrate abroad.”

More broadly, Mr. Gorman warned that Brexit would have a clear impact on the country. “It could lead to significant consequences in a number of areas, including the economy, politics, or security,” he said.

In a wide-ranging interview, Mr. Gorman also warned that investment banks across the world faced a tough start to 2016 as fears of a global economic slowdown limited trading.

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