JPMorgan is planning to move hundreds of London-based bankers to expanded offices in Dublin, Frankfurt and Luxembourg. The reason of such kind of a decision is to ensure easy access to the European Union’s single market after Brexit.
Not only JPMorgan is planning such a movement, most of the global banks are preparing to move some London-based operations into new offices inside the EU. After the decision of the United Kingdom to get out of the 28-nation bloc, global companies have started to work on the consequences of this leaving.
JPMorgan announced in a press release that they three banks of the company in Europe will be used as the anchors for their operations. The firm’s European Union investment banking operations will possibly be based in Frankfurt, while monitoring will be located in Dublin and treasury services will be handled in Luxembourg. It is stated that JPMorgan will initially move approximately 1,000 staff to these three cities.
Michel Barnier, the chief Brexit negotiator of the European Union set aside negotiation demands of London-based finance firms about transitional arrangements for the UK’s withdrawal from the union. It is declared that there will be no agreements on commercial relationship until the end of the year.
Before the announcement of JPMorgan about the planned changes with the withdrawal of the UK from the European Union, Deutsche Bank AG, Barclays Plc. and Goldman Sachs Group Inc. declared their plans. Deutsche Bank is planning to move about 4,000 staff from London. Barclays Plc announced it will activate its contingency plan within six months while Goldman Sachs Group Inc. is planning to relocate the positions next year.
For the global banks Frankfurt and Dublin seem to be the favored destinations. Standard Chartered PLC took the decision of take Germany’s financial center for its new EU base. Goldman Sachs and Morgan Stanley seem to do the same.