EU prepares to move bank regulator from London

Paris and Frankfurt seen as the most likely new locations for watchdog, but Milan is also interested

The EU is preparing to move its European Banking Authority from London following Britain's vote to leave the Union, EU officials said on Sunday, setting up a race led by Paris and Frankfurt to host the regulator.

The move underlines how the City of London can expect to be frozen out of EU financial regulation - and possibly from Europe's capital markets - depending on the terms of Brexit.