Brexit may cost banks $50 billion

HSBC Holdings Plc was the first bank to spell out the cost of Brexit

Banks may need to find $30 billion to $50 billion of additional capital to support new European units in the aftermath of a hard Brexit, and some smaller firms may abandon their operations on the continent altogether as profitability plunges, according to Oliver Wyman Inc.

The extra money is equivalent to 15 percent to 30 per cent of the capital wholesale banks commit to the region, the management consultant said in a report Tuesday. In addition, operating costs could rise by $1 billion as functions currently handled in London are duplicated on the continent as banks scramble to establish new