JPMor­gan to move UK staff to Europe

New Straits Times - - Business World -

DUBAI/LON­DON: JPMor­gan Chase & Co plans to move hun­dreds of Lon­don-based bankers to ex­panded of­fices in Dublin, Frank­furt and Lux­em­bourg as it pre­pares for the United King­dom to lose easy ac­cess to the Euro­pean Union’s (EU) sin­gle mar­ket after Brexit, said head of in­vest­ment bank­ing.

“We are go­ing to use the three banks we al­ready have in Europe as the an­chors for our op­er­a­tions,” said Daniel Pinto on Tues­day in Riyadh, re­fer­ring to its lo­cal en­ti­ties.

“We will have to move hun­dreds of peo­ple in short term to be ready for day one, when ne­go­ti­a­tions fin­ish, then we will look at the num­bers in long term.”

Global banks are pre­par­ing to move some Lon­don-based op­er­a­tions into new or ex­panded bases inside the EU after Bri­tish Prime Min­is­ter Theresa May trig­gered the for­mal mech­a­nism for quit­ting the 28-na­tion bloc.

Be­fore the June referendum, JPMor­gan chief ex­ec­u­tive of­fi­cer Jamie Di­mon told UK em­ploy­ees that as many as 4,000 could be re­lo­cated in the event of Brexit.

JPMor­gan is just the lat­est bank to flesh out its plans for Brexit as the count­down ticks away to­ward Bri­tain’s March 2019 with­drawal from the bloc.

Deutsche Bank AG said last week it might move 4,000 staff from Lon­don, Bar­clays Plc said it would ac­ti­vate its con­tin­gency plan within six months, while Gold­man Sachs Group Inc said it would likely be­gin re­lo­cat­ing po­si­tions next year.

Frank­furt and Dublin are the favoured des­ti­na­tions. Stan­dard Char­tered Plc and Bar­clays are con­sid­er­ing the Ir­ish cap­i­tal for their EU base, while Gold­man Sachs and Mor­gan Stan­ley are weigh­ing Ger­many’s fi­nan­cial hub.

Lon­don could lose 10,000 bank­ing jobs and a fur­ther 20,000 roles in fi­nan­cial ser­vices, ac­cord­ing to the Bruegel think tank, while other es­ti­mates range from as lit­tle as 4,000 to as many as 232,000 jobs. Bloomberg

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