Barclays chief asks May to reject single market

LONDON: Barclays Plc Chief Executive Officer Jes Staley told British Prime Minister Theresa May to be prepared to sacrifice access to the single European market after Brexit if it means gaining control of its own financial rules, people with knowledge of the discussions said.

The American banker's comments come as US President Donald Trump relaxes the reins on financial institutions, giving them a competitive advantage over the rest of the world. Britain should prioritise its own ability to set rules even at the cost of losing access to European markets, Staley told May at a meeting of financial executives earlier this month, said the people who declined to be identified. A Barclays spokesman declined to comment. Staley is breaking ranks with Britain's top bankers, who had been united in their calls for the country to strike a deal with the European Union that would give it continued access to the bloc after Brexit. His comments chime with those of Bank of England Governor Mark Carney, who said in November the UK could review a European-dictated cap on bonuses after Brexit, a rule particularly hated by bankers.

As one of the biggest investment banks based in London, Barclays has much to lose from a Brexit deal that hampers its ability to compete with Wall Street. The lender is expanding its operations in Ireland to ensure it can continue trading after the split. Other financial executives at the meeting with May on Jan. 11 included Deutsche Bank AG CEO John Cryan, HSBC Holdings Plc Chairman Mark Tucker and UBS Group AG Chairman Axel Weber. Staley reiterated his comments to gov’t officials whilst attending the World Economic Forum in Davos this week.