The City, London’s financial powerhouse, loses its ally Jonathan Hill

The “City”, London’s financial district, lost its main advocate in the European Union with the departure Saturday of British Commissioner Jonathan Hill.

Hill announced his resignation following the United Kingdom’s referendum result that is set to take the country out of the EU.

Although the move was largely expected, Hill’s departure from the Financial Stability, Financial Services and Capital Markets Union portfolio is another setback for the markets, which on Friday suffered heavy losses after Britain’s decision to leave the EU became clear.

Hill said it was necessary to listen to the will of the British people, adding that it was not possible for him “to carry on properly.” Hill said “the right thing to do is to stand down.”

He said he would remain at his post long enough to ensure “an orderly handover” to a successor.

JeanClaude Juncker, President of the European Commission, appointed Hill to the post despite his acknowledged links to the City in a bid to reinforce the UK’s commitment to the EU.

Hill will be replaced July 15 by Valdis Dombrovskis, currently vice president for the Euro and Social Dialogue.

Villeroy de Galhau, Governor of the Bank of France and member of the governing council of the European Central Bank, said the City would lose valuable access to continental deals if the UK left the single market.

The City’s socalled “passport rights” attract many multinationals to London seeking financial mechanisms that enable them to access the European market of 500 million customers.

Large United States investment banks such as JP Morgan Chase, Goldman Sachs, Bank of America and Morgan Stanley are preparing to transfer part of their workforce to Dublin, Paris and Frankfurt, according to the Financial Times.

British banks such as HSBC and Barclays also announced they may need to strengthen their presence outside the UK.

The financial newspaper also reported that, due to “brexit” the British government had delayed the scheduled sale of bank shares after the credit crunch in Lloyds and Royal Bank of Scotland that were part nationalized in 2008.

The referendum result had an immediate effect on financial markets with the Pound Sterling falling by more than 10 percent against the dollar to its lowest level since 1985.

The Bank of England said Friday it had prepared 250 billion pounds (310 billion euros) to support the UK’s financial system during the expected volatility following the “brexit.”