German blackout fears spook JP Morgan
JP Morgan could move work from its ger- man offices to london as Europe’s biggest economy braces itself for blackouts.
The US banking giant has drawn up plans in case of a ‘perfect storm’ that would see power outages in germany this winter.
one option would be to shift work from its base in Frankfurt to london and other European offices if blackouts threaten its operations. Such a move would raise eyebrows given repeated warnings by JP Morgan boss Jamie Dimon over Brexit.
JP Morgan moved billions of dollars of assets from london to Frankfurt in the wake of the vote to leave the EU.
But the Wall Street titan has now drawn up the plans amid an energy crunch in Europe following russia’s invasion of Ukraine. kremlin-controlled gazprom has closed the nord Stream 1 gas pipeline from russia to germany, plunging European gas markets into chaos, driving up prices and sparking fears of shortages. russian president Vladimir Putin said they would only resume supplies if sanctions over its invasion of Ukraine are lifted.
The plans to shift work from its base in Frankfurt to london and other European offices if germany is hit by blackouts are among a range of options.
others include using diesel generators at its offices that would let them function for days without power or telling staff to work from home to reduce energy consumption.
a source told The Daily Telegraph: ‘Work transfers could also be to and from any location, not just involving the Uk. It would take a perfect storm of a complete shutdown of russian gas supply, no reduction of gas use at all and little alternative sourcing for gas before it would have a real impact on our business.’
The plans are being drawn up as a precaution and it is believed there is no intention of them being activated.
nord Stream 1, which runs under the Baltic Sea to germany, is by far the biggest russian gas pipeline to Europe, carrying up to 59.2bn cubic metres of gas per year.
once considered a symbol of the cooperation between one of the world’s biggest energy powers and the world’s fourth largest economy, nord Stream has become the subject of recriminations between Berlin and Moscow.