Gold­man Sachs mov­ing its staff to Frank­furt

The Star Early Edition - - BUSINESS REPORT - Tino An­dresen

GOLD­MAN Sachs Group is shift­ing per­son­nel away from Lon­don as for­mal ne­go­ti­a­tions on the UK’s exit from the EU be­gin to­day, ac­cord­ing to the bank’s re­gional head, Richard Gn­odde.

“We started to shift re­sources to Frank­furt and other Euro­pean cities,” Gn­odde told Frank­furter All­ge­meine Zeitung. Gold­man Sachs will “very prob­a­bly” at least dou­ble staff num­bers in the Ger­man city, where it cur­rently em­ploys 200, he said. Frank­furt has an ad­van­tage over ri­vals in Europe, in­clud­ing Paris and Dublin, be­cause the Euro­pean Cen­tral Bank is based in the city, Gn­odde said.

Gold­man Sachs is scout­ing for of­fice space in Frank­furt that could serve as its new trad­ing hub in­side the EU and plans to take more space in the build­ing it cur­rently oc­cu­pies to be­gin with, peo­ple fa­mil­iar with the mat­ter said ear­lier this month.

New bases

Bri­tain’s de­ci­sion to quit the EU has prompted global banks to es­tab­lish new bases in­side the eco­nomic bloc to se­cure con­tin­ued ac­cess to clients in the re­gion.

Gold­man Sachs is con­sid­er­ing mov­ing as many as 1 000 em­ploy­ees to Frank­furt, a per­son fa­mil­iar with the plans said ear­lier this year, with Lon­don set to lose as many as 30 000 fi­nan­cial ser­vices jobs af­ter Brexit, ac­cord­ing to the Bruegel think tank.

It would be an ad­van­tage for the fi­nance in­dus­try to con­cen­trate on a few cen­tres to at­tract the best tal­ent and to guar­an­tee economies of scale and ef­fi­ciency, Gn­odde said. – Bloomberg

PHOTO: BLOOMBERG

Richard Gn­odde, co-chief ex­ec­u­tive of Gold­man Sachs, is mov­ing staff to Frank­furt.

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