Barclays chairman warns Brexit could spark economic crisis

Britain's shock EU withdrawal could cause an economic crisis, a top banker warned Thursday, adding it was "far from certain" London would secure its exit demands in Brussels.

"This is a political crisis that has the potential to create an economic one," said John McFarlane, chairman of Barclays bank and head of finance lobbyists TheCityUK.

"Unlike the previous crisis, in this instance, the City does not bear the accountability," he added in reference to the 2008-2009 global banking crisis.

"We have experienced an exogenous shock, and have acquitted ourselves admirably."

McFarlane said the financial sector wanted the British government to secure single market access in the exit talks, while it also wanted the ability to employ talented workers from Europe and the rest of the world.

Some restrictions on the free movement of people were likely, he added.

"While it is perfectly understandable that it will take time for the country to find its feet, we do urgently need stable, effective and inspirational political leadership to steer the way forward," noted McFarlane in a speech to TheCityUK's annual gathering in London.

"Unfortunately it is far from certain what we might be able to secure in our discussions with the EU.

"It is nevertheless important for us to understand what options exist and to plan prudently for all contingencies."

EU leaders had meanwhile agreed Wednesday that Britain cannot have "a la carte" single market access after leaving the union -- without accepting the bloc's rules on free movement.

City bankers are anxious that they will lose their so-called "passporting" rights that currently allow London-based financial services firms to operate across the bloc.

On June 23, Britons voted 52 percent to 48 percent in favour of leaving the EU after four decades as a member.

The shock result -- which confounded opinion polls that had indicated a Remain win -- sparked turmoil in global financial markets and sent the pound collapsing to a 31-year low against the dollar.

"We went to bed on Thursday being assured by the markets that by the morning it would be business as usual, but woke to find that the UK suddenly saw its future outside of Europe," added McFarlane.

"Make no bones about it, this has been a serious geopolitical and economic shock that requires a coordinated response.

"We now must build a new international model for the UK, naturally looking globally, but nevertheless retaining a strategic, but possibly different, partnership with the EU."