Daily Management Review

JPMorgan is about to leave London


JPMorgan Chase & Co. plans to transfer hundreds of London bankers to expanded offices in Dublin, Frankfurt and Luxembourg. The bank prepares for a possibility that the United Kingdom might lose access to the single EU market after Brexit, Bloomberg reports.

Michael Premo
Michael Premo
"We are going to use the three banks that we already have in Europe as anchors for our operations", said Daniel Pinto, Chief Executive Officer of Europe, Middle East and Africa at JPMorgan. "We will have to move hundreds of people in the short term to be ready for the first day, when the negotiations are over, and then we will consider longer-term indicators".

World banks are preparing to transfer some operations from London to new or expanded bases within the EU after British Prime Minister Theresa May initiated a formal exit mechanism from the bloc of the 28 EU countries. 

Prior to the June referendum, JPMorgan’s General Manager Jamie Dimon told the bank's staff in Britain that 4,000 people could be moved in the case of Brexit. In January, he said that the number could be higher - or lower - depending on how the negotiations are be held.

"We have to plan a scenario in which there will not be a passport transaction between Britain and the EU, and we have to move a significant part of our business to continue to serve our European customers", Pinto said. "We will have to wait to understand what kind of deal it will be, and see what we need to do from there".  

JPMorgan is the last bank to disclose its plans for Brexit, as there is less time left for Britain to withdraw from the EU. Deutsche Bank AG said last week that it could move 4 thousand employees from London, Barclays reported that they are activating the contingency plan within six months, and Goldman Sachs said they are likely to start moving jobs in the next year.

The bank is already looking for office space in Dublin and Frankfurt, Bloomberg News reported in March. The lender can rent 50 to 150 thousand square feet of space, and wants to see flexibility of the landlords to reduce or expand the area depending on what May agrees.

source: bloomberg.com

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