Bri­tain needs global banks like JP Mor­gan

The Pak Banker - - Company & Boss News -

LONDON: The value of bank­ing to Bri­tain was high­lighted on Mon­day when Mark Hoban, fi­nan­cial sec­re­tary to the Trea­sury, took time off from his depart­ment's banker bash­ing agenda to con­grat­u­late bankers at JP Mor­gan for spend­ing about £600m ac­quir­ing the old Lehman Broth­ers build­ing in Ca­nary Wharf and an­other big of­fice devel­op­ment in London, 60 Vic­to­ria Em­bank­ment. It shows JP Mor­gan thinks there's value in the UK, which is a wel­come re­minder that we've still got things oth­ers want, de­spite the de­cid­edly mixed mes­sages from the Govern­ment and unions.

JP Mor­gan is a Wall Street firm in­volved in global in­vest­ment bank­ing. London is its Euro­pean home be­cause the UK is an in­ter­na­tional fi­nan­cial cen­tre. This is not the same thing at all as our do­mes­tic bank­ing in­dus­try of branches, cash ma­chines, sav­ings and loans. This quite sep­a­rate in­ter­na­tional bank­ing busi­ness plugs the UK econ­omy into a rich Gulf Stream of com­merce and trade that re­lies on fi­nan­cial ser­vices. In­ter­na­tional com­pa­nies make the UK their global home, or at least their in­ter­na­tional head­quar­ters, to be close to these es­sen­tial bank­ing ser­vices and pools of cap­i­tal that we're rich in.

These are real com­pa­nies, such as GE, Unilever and Glax­oSmithK­line, that don't just have a large cor­po­rate of­fice here but have fac­to­ries and make things here, too. They cre­ate skilled jobs, take on ap­pren­tices and pro­duce ex­ports - not to men­tion tax rev­enues. But they wouldn't stay here if the world-class pro­fes­sional ser­vices they need weren't here as well. -PB News

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