Thursday 20 October 2016 11:43 am

Brexit more benefit to US than Europe, says Deutsche Bank's chief economist

The US has more to gain from the EU taking a hard stance in the Brexit negotiations than the European capitals do, the chief economist of a major international bank has said today.

Speaking at a British Bankers' Association (BBA) conference, David Folkerts-Landau, group chief economist and global head of research at Deutsche Bank, warned that, should other EU member states try to steal London's financial crown by pushing for an unfavourable Brexit deal for the City, "the net beneficiaries are going to be the Americans…and not Europe".

Folkerts-Landau also cast doubt on "the idea that we can take London and apportion it across Europe".

Just last week, Sir Jon Cunliffe, the Bank of England's deputy governor with responsibility for financial stability, said he believed firms could turn to New York as a better place to do business following Brexit, while European hubs such as Frankfurt, Paris and Amsterdam did not pose a serious threat to London's standing as a financial centre.

Read more: Hilary Benn calls for Brexit transitional arrangements for the City

"What we call London, I can't see that being replicated in the foreseeable future in one place in the European Union," Sir John told the House of Lords EU financial affairs committee.

He added: “The idea the ecosystem just transplants itself is highly unlikely.”