The UK vote to withdraw from the EU is “a negative shock to investor confidence” that has increased risk to the stability of the US financial system and could lead to excessive risk-taking and borrowing, according to the US Treasury Department Office of Financial Research. “It introduces months or years of uncertainty about the rules governing the UK’s investment, financing, and trade relations with Europe and the rest of the world,” the office says in a report.
Reuters (25 Jul.),
