U.K.'s Alarm on $127 Trillion of Derivatives Rebuffed by EU
- Dombrovskis sees no broad Brexit threat to financial contracts
- Banks should prepare to fix any contract problems, EU says
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The Bank of England’s warning that Brexit threatens trillions of pounds of financial contracts is falling on deaf ears in Brussels.
Valdis Dombrovskis, the European Union’s head of financial-services policy, dismissed an alert issued by BOE Governor Mark Carney, who said the U.K.’s withdrawal from the bloc put as much as 96 trillion pounds ($127 trillion) of derivatives contracts at risk. Where Carney called for U.K. and EU authorities to step in, Dombrovskis said the onus is on firms to Brexit-proof existing contracts.