It would also result in disruption and layoffs at the contractor and subcontractor facilities around the country and necessitate a time-consuming and expensive effort to reestablish the line involving requalification of myriad vendors and the painful resumption of the build-up to full-rate production.
The obvious policy response is intervention to cap the sterling rate, build up foreign-exchange reserves, and offset the monetary effects by issuing sterling debt.
The good news is that big banks probably now have enough capital to absorb the aggregate loss rate suffered by the system from 2007 to 2009 (although their build-up of liquidity reserves has been patchier).