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		</div><p>The chairman of RBS has warned that banks could pull out of Britain unless Theresa May secures a post-Brexit transition plan.</p>
<p>Howard Davies said American and Japanese banks are very concerned at the prospect of a hard Brexit and are drawing up contingency plans.</p>
<p>He urged the Prime Minister to offer the City some reassurance and certainty by negotiating a transitional deal which will allow firms based in Britain to continue to be able to operate in the rest of the EU.</p>
<p>He told ITV&#8217;s Peston On Sunday show that jobs could be lost to Europe and to Ireland.</p>
<p>He said: <i>&#8220;I think it is damaging if we don&#8217;t get a transitional deal because I think you will then see banks and financial institutions making decisions on the basis of uncertainty.</p>
<p>&#8220;They will not wait because they have to make a decision which will allow them to be, to continue to function in the event of a hard Brexit if that&#8217;s a possibility.</p>
<p>&#8220;So they will not sit back, they are currently making contingency plans and once you&#8217;ve got a contingency plan &#8211; hey, there is a risk you might implement it one day.</p>
<p>&#8220;And therefore I think that it is quite urgent.&#8221;</i></p>
<p>Financial firms fear they could lose membership of the single market and their passporting rights, which allow companies in the UK to operate across the European Economic Area.</p>
<p>Howard said the Government does not need to detail its full negotiating position, but needs to reassure the City so Britain does not encounter a <i>&#8220;jerky and sudden&#8221;</i> departure from the EU.</p>
<p>He said: <i>&#8220;What is really important is the transitional arrangements.</p>
<p>&#8220;So what we are particularly focused on in the City at the moment is to try to get an understanding that actually allowing a cliff edge departure from Brexit would be damaging for everybody, because about three quarters of all European capital transactions take place in London &#8211; often by French banks or German banks etc &#8211; but they take place in London.</p>
<p>&#8220;If you suddenly broke that off it would be destabilising for the whole of the European financial markets.</p>
<p>&#8220;So what we need is a transitional arrangement, as the Article 50 process starts, so we can say &#8216;look, here is the way in which things are going to work in the medium term&#8217;.</p>
<p>&#8220;In the long term, of course, I think there will be some movement of activity.&#8221;</i></p>
<p>Howard said he is optimistic transitional arrangements can be drawn up as it is in the interests of the remaining EU states as well as Britain.</p>
<p>His warning came as Boris Johnson snubbed an emergency EU foreign ministers&#8217; meeting called to discuss Donald Trump&#8217;s shock US election victory.</p>
<p>Foreign Secretary Mr Johnson, who branded vocal European concern about the US election result as a <i>&#8220;whinge-o-rams&#8221;</i>, was dismissive of the need for a special EU meeting.</p>
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