Trading in the shares of both Barclays and RBS was briefly halted on Monday as both banks face sharp losses in the price of their stock following the UK’s vote to leave the European Union, media reports suggest.
Shares in both banks fell more than 10% on Monday as an uncertain picture surrounding the future of the British economy — and in particular, the financial sector — is continuing to spook investors and is sending them fleeing from risky equities.
As that flight continued, trading was stopped to prevent even higher losses. Trading has now resumed after shares were halted for around five minutes, a spokesperson from the London Stock Exchange said.
Uncertainty over the City of London’s role as Europe’s key financial hub, once the UK leaves the European Union, means that many banks are thought to be considering moving substantial numbers of staff away from their UK operations and to elsewhere on the continent. On Friday it was rumoured that Morgan Stanley is preparing to move thousands of staff out of Britain, a rumour that was denied. It is also thought that HSBC and JP Morgan are among the banks that could send UK-based staff elsewhere in the aftermath of Brexit.
This broad uncertainty in the sector is sending shares tumbling. Here is how three of the UK’s biggest banks, RBS, Barclays, and Lloyds look so far on the day:
HSBC has come off relatively unscathed on the day, thanks to its limited exposures to the UK market compared to other FTSE listed banks. Here is how it looks: