Citi picks Frankfurt, but Dublin may gain
US banking giant Citigroup has confirmed it has chosen Frankfurt for headquartering its EU broker-deal services post Brexit. However, it left open the possibility that it would shift jobs to other European locations, including Dublin.
Citigroup said about 150 new roles were likely to be located in the EU as a result of changes from Brexit. It said they could be located in Amsterdam, Dublin, Luxembourg, Madrid and Paris, as well as Frankfurt.
But it confirmed Frankfurt would be its European hub – even though the bank employs more than 2,000 in Dublin.
“We plan to convert an existing German subsidiary into an investment firm (broker-dealer).
“Frankfurt is our first choice for headquartering our EU broker-dealer based on the existing infrastructure, and the people and expertise we already have on the ground,” Jim Cowles, Citi’s head of Europe, Middle East and Africa, said in a memo to staff, as reported yesterday by Reuters.
“It is not yet possible to assess the outcome or timing of the Brexit negotiations, but in certain circumstances we may need to create approximately 150 new roles located in the EU.”
Morgan Stanley has also chosen Frankfurt for its new trading headquarters in the EU, though it said it would move parts of its asset-management operations to Dublin, according to Bloomberg.
Dublin has long been tipped as a potential contender for Brexit spoils from the City of London, with recent wins including insurer Legal & General.
But it has also lost out to Luxembourg, Brussels and Frankfurt after big-name insurers AIG, Lloyd’s and Standard Chartered revealed their plans.