The banking industry is set for big changes if Britons vote to quit the European Union in June.
It's a difficult subject, to say the least. At least one bank reportedly has banned the term "Brexit" in the workplace. Elsewhere in the banking business, executives mostly duck the topic of a referendum vote coming June 23 that could have the United Kingdom dumping the European Union.
"They aren't commenting publicly," said one person employed by a bank in London, who asked to not be quoted. "They don't want to be seen as trying to influence the outcome."
But changes to the European banking industry would be profound. While the short-term ramifications of the U.K. exiting the EU would result in wholesale staffing changes at European and British banks, a bigger impact could come in the form of jolts to central bank planning and the cost of capital.
"The real issue is how the market treats funding costs," said Ryan Caldwell, partner and CIO at Chiron Investment Management.