As far as Brexit headaches go, Barclays' John McFarlane saysthat while his bank is on top of job relocations, he's moreconcerned about rewriting “hundreds of thousands” of contracts.

He's not alone. Andrew Bailey, head of the U.K. FinancialConduct Authority, said “contract continuity” is among thebiggest potential disruptions in a no-deal, no-transition Brexit.Both Bailey and McFarlane, who also chairs London's banking lobby,testified before lawmakers Wednesday. Bank of England Governor MarkCarney and European Central Bank President Mario Draghi have alsoexpressed concern about the issue and the lack of time left for afix.

A week ago, data from the European Banking Authority showed thescope of the issue, and that money is already on the move for thatreason. European banks have slashed their U.K. assets by $425billion, driven by a 35% drop in derivatives exposures. Insurancepolicies are affected too, with Carney saying that about 20 billionpounds ($26.9 billion) of insurance liabilities in Britain could beaffected without swift action.