Brexit. A single word question: will Britain leave the EU or not? The referendum has set Conservatives against each other as the debate continues. London Mayor Boris Johnson added his support to the leaving side causing sterling to slip a bit. Such a slip adds to the argument to stay. Some analysts suggest in or out won't impact sterling too much either way. Stay tuned. The media remains focused.
Meanwhile, Xavier Rolet, a former Lehman Brothers banker serving London Stock Exchange as CEO since 2009, is pushing for a merger between London Stock Exchange Group, PLC and Deutsche Borse, AG. Mr Rolet is quoted as saying, "The world of exchanges is primed for consolidation into a handful of powerhouses." According to Richard Repetto, an analyst at Sandler O'Neil+Partners LP who interviewed Mr. Rolet, Mr. Rolet believes exchanges are similar to the investment banking industry. That's quite a statement from someone whose former employer was ruined in the bubble burst of 2008.
The Wall Street Journal reports antitrust regulators are wary of allowing one group to control so much trading because of the ability to raise fees. WSJ goes on to say, "Both groups operate clearing houses, so regulators might balk at allowing any single institution control a majority of clearing and settlement for a large swath of derivatives in Europe.'
It appears Brexit may not matter in the long run if this merger is permitted. The tentacles of banking are constantly reaching for a grip on centralised power, ever more control. So as the media moves the shells around, bets are being placed on where's the peanut.
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