Ex-Minister To Lead Banks' Brexit Response

A Treasury minister in the last Labour government has been drafted in to spearhead bankers efforts to contain the fallout from the UK's decision to leave the European Union (EU).

Sky News has learnt that Baroness Vadera, who played an important role in orchestrating the bailout of failing lenders during the 2008 financial crisis, was asked on Friday to chair a meeting of senior representatives of the financial services industry that will take place next week.

Now (NYSE: DNOW - news) the chairman of Santander UK (LSE: 44RS.L - news) , the UK's fifth-largest high street bank, Baroness Vadera will help to shape plans for one of the country's most important industries to deal with the potential loss of access to the EU's financial services passporting regime.

The passport enables banks to trade seamlessly across the European single market, and the likely exclusion of UK-based banks from it will force major employers to relocate thousands of staff to markets within the newly reconstituted EU.

Baroness Vadera, a former protege of Gordon Brown, has taken on a string of corporate roles since leaving government, including non-executive roles on the boards of BHP Billiton (NYSE: BBL - news) , the miner, and AstraZeneca (NYSE: AZN - news) , the pharmaceuticals group.

The British Bankers Association declined to comment on her role chairing next week's meeting, which will include officials from a number of financial services trade groups.

:: How Leave Vote Will Affect Your Money

Both British and international banks moved to reassure staff and clients about the potential impact of Brexit on Friday, with wild fluctuations in lenders' share prices evoking memories of the banking crisis eight years ago.

Barclays (LSE: BARC.L - news) , HSBC, Lloyds Banking Group (Other OTC: LLOBF - news) and Royal Bank of Scotland (LSE: RBS.L - news) all issued statements aimed at persuading customers that their deposits were secure.

Morgan Stanley (Xetra: 885836 - news) , meanwhile, denied a report by the BBC that it had acted immediately upon learning the referendum result to begin moving 2000 of its London-based staff to Dublin and Frankfurt.

Responding to the referendum result, Anthony Browne, the BBA chief executive, said: "A significant amount of contingency planning has already been undertaken and the industry is very well prepared, and have increased capital and liquidity.

"Banks will now assess what the result means for their customers and staff in the long term.

"We also believe that Government should have time to plan the UK’s approach to any Exit Treaty and lay the ground for an effective negotiation with EU partners.

"It is important, therefore, that the Government only triggers the Article 50 process after careful deliberation on its aims and negotiating strategy.

"It is now important that we have as orderly a transition as possible to minimise the impact on customers both in the UK and the rest of the EU, and to limit any effect on the economy".