Tags: jp morgan | brexit | london | bankers

JP Morgan Brexit Plan Will Move Hundreds of Bankers Out of London

Image: JP Morgan Brexit Plan Will Move Hundreds of Bankers Out of London

File photo dated Jan. 28, 2014, of the European headquarters of JP Morgan bank in London. (Press Association via AP Images)

By    |   Wednesday, 03 May 2017 01:54 PM

JP Morgan has announced a Brexit-connected move of hundreds of its London bankers to offices in Dublin, Frankfurt, and Luxembourg so the company can continue to have easy access to the European Union after the United Kingdom breaks its ties.

Daniel Pinto, head of JP Morgan Chase & Co.'s investment banking, told Bloomberg that the banks there will play a more crucial role for businesses in Europe. JPMorgan chief executive officer Jamie Dimon warned U.K. employees before the referendum last year that as many as 4,000 could be relocated if Brexit was approved.

"We are going to use the three banks we already have in Europe as the anchors for our operations," Pinto told Bloomberg. "We will have to move hundreds of people in the short term to be ready for day one, when negotiations finish, and then we will look at the longer-term numbers.

"We have to plan for a scenario where there is no U.K.-EU passporting deal, and we have to move a substantial portion of our business to continue serving our European clients. We'll have to wait to see what kind of deal can be achieved and see what we need to do from there," Pinto added.

The Guardian reported that JP Morgan employs about 16,000 in the United Kingdom, with about 11,000 in London. The newspaper said JP Morgan is the latest company that is sorting out possible relocation after Brexit.

Standard Chartered, which is based in London but focuses on emerging markets, told its shareholders Wednesday in London that it was in talks with regulators in Frankfurt about setting up a subsidiary in Germany, wrote The Guardian.

Also, Deutsche Bank said as many as 4,000 of its 9,000 U.K. workers could be relocated to Frankfurt and other EU locations because uncertainty remains about Britain's relationship with EU-member countries, noted The Guardian.

The BBC News reported that Goldman Sachs will move "hundreds" of jobs away from London to beef up its European presence. Insurance companies Lloyd's of London and Royal London are also setting up subsidiaries outside the U.K., noted the BBC News.

A report last fall commissioned by the City UK industry group said London could lose as many as 75,000 financial services jobs if EU operations are severely disrupted after Brexit.

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JP Morgan has announced a Brexit-connected move of hundreds of its London bankers to offices in Dublin, Frankfurt, and Luxembourg so the company can continue to have easy access to the European Union after the United Kingdom breaks its ties.
jp morgan, brexit, london, bankers
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2017-54-03
Wednesday, 03 May 2017 01:54 PM
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