An electronic board displays the latest news outside the Thomson Reuters' headquarters at Canary Wharf in London, Britain, January 26, 2017.
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REUTERS/Eddie Keogh

by Simeon Djankov (PIIE)

The UK government's planned exit from the European Union will result in a 12 to 18 percent loss of revenue and a 7 to 8 percent drop in employment in the financial sector in the City of London, according to estimates by Simeon Djankov in this Policy Brief. As a result, the UK government may loosen its financial regulations in an effort to bring in more investment. Djankov warns that such a policy move may trigger a regulatory race with other major financial markets, harming the global financial system.

Photo Credit: 
REUTERS/Eddie Keogh