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U.K. taxpayers lose billions in Brexit bank crash

U.K. votes to leave the EU: What now?
U.K. votes to leave the EU: What now?

Two British banks were briefly suspended from trading in London after heavy losses triggered emergency measures that froze their shares.

Barclays and Royal Bank of Scotland both tripped so-called circuit breakers after crashing more than 8% on Monday. When trading resumed, Barclays(BCS) extended its losses to more than 10% and RBS(RBS) shed 13%.

Both banks confirmed their shares were suspended, but did not comment further.

Bank stocks have been rocked since the U.K. voted to leave the European Union. Barclays shares are now 26% below their closing price on Thursday, while RBS has tanked by 30%.

The future of London as the financial capital of Europe has been put to question following the vote. Many global banks use Britain as a springboard for their business throughout the EU, because they have automatic license to operate across the bloc.

Related: London banks will pay the ‘price’ of Brexit

But many European leaders have warned that London cannot retain its privileges following the decision to leave.

The market plunge continued on Monday. The pound sank against the dollar to trade near $1.32, roughly 12% below its pre-vote level. The benchmark FTSE index in London was down about 1.2%, while stocks in France and Germany also dropped by more than 1%.

— Chris Liakos contributed reporting.

CNNMoney (London) First published June 27, 2016: 6:19 AM ET



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