Banks prepare for “economic nuclear winter”: Senior banking analyst warns of EU APOCALYPSE
BANKS are preparing for the worst in the second half of the year as it faces an ‘economic nuclear winter’, a major investment bank expert has warned.
By ZOIE O’BRIEN
Express.co.uk
Mon, Aug 29, 2016
A series of political shocks – including Britain’s vote to leave the EU – have led to fears the entire Union could crumble, the currency could collapse and economic nightmares could become a reality.
Now it has been revealed this kind of “economic nuclear winter situation” is being prepared for by major banks.
Weak corporate earnings, a banking crisis, and the Brexit vote have sparked disaster planning for the worst case scenarios in the second half of the year.
A major lender told CNBC: “This could mean triggering Article 50, a referendum in other European nations leading to a break-up of the euro or sterling hitting below $1.20 or lower.
“The banks are ready for anything now.”
After the United Kingdom voted to leave the European Union in June, there have been talks a similar referendum may be held in France, the Netherlands and other countries.
The source added: “Markets hate uncertainty and the events this year have unfortunately created a lot of mystery around what is going to happen next.”
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