Global banks have warned they could move thousands of jobs out of Britain to prepare for the expected disruption caused by the country's exit from the European Union, posing a risk to London's status as a major financial centre. Leading financial firms warned for months before last June's Brexit referendum that they would have to move some jobs if there was a leave vote, and have been working on plans for how they would do so for the past six months.More details are starting to emerge after Prime Minister Theresa May confirmed Britain would leave the European single market, ending banks' hopes they might retain "passporting" rights that let them sell their services across the EU out of their London hubs.Below are comments and reports on banks about their potential Brexit plansHSBC
Stuart Gulliver, CEO of HSBC, Europe's biggest bank, said his bank will relocate staff responsible for generating around a fifth of its UK-based trading revenue, or around 1,000 people, to Paris. BARCLAYS
Barclays Chief Executive Jes Staley told BBC Radio in an interview in Davos that the bank will keep the bulk of its activities in Britain after the UK leaves the European Union, saying that any changes to how the bank operates will be small and manageable. UBS
Swiss bank UBS's Chairman Axel Weber said at the World Economic Forum in Davos in January that about 1,000 of the Swiss bank's 5,000 employees in London could be affected by Brexit.Separately, Chief Executive Sergio Ermotti said that UBS has a degree of flexibility if its UK outpost looks set to lose its ability to operate across the European Union once Britain leaves the bloc.The world's biggest wealth manager has also set up a bank in Frankfurt to consolidate most of its European wealth management operations, after Britain's vote to leave the European Union dashed London's chances of being the host city.
Credit Suisse's Chief Executive Tidjane Thiam said in September that his bank was relatively well placed to deal with the impact of Brexit and that only around 15-20 percent of volumes in the investment bank would be impacted.LLOYDS
Lloyds Banking Group, Britain's largest mortgage lender and the only major British retail lender without a subsidiary in another EU country, is considering setting up a subsidiary in Frankfurt as Britain prepares to leave the European Union, a person familiar with the plans told Reuters.
U.S bank Goldman Sachs is considering moving up to 1,000 staff from London to Frankfurt because of concerns over Britain's vote to leave the European Union, Germany's Handelsblatt newspaper reported in January, citing financial sources.The bank is considering halving its London staff to 3,000 and moving key operations to New York and continental Europe, particularly Frankfurt, the paper reported.Three people familiar with the matter told Reuters in November that Goldman Sachs is considering shifting some of its assets and operations from London to Frankfurt.MORGAN STANLEY
U.S. bank Morgan Stanley has identified many of the roles that will need to be moved from Britain following its exit from the European Union, sources involved in the processes told Reuters.
Morgan Stanley, which bases the bulk of its European staff in Britain, will have to move up to 1,000 jobs in sales and trading, risk management, legal and compliance, as well as slimming the back office in favour of locations overseas, one source told Reuters. CITIGROUP
Citigroup, which has also identified roles that will need to be moved out of the UK and has a large banking unit in Dublin, will need to shift 100 positions in its sales and trading business, sources with knowledge of the matter said.JPMORGAN
JPMorgan Chase & Co could be forced to move 4,000 of its 16,000 staff currently based in Britain if the country loses access to the single market, bank CEO Jamie Dimon warned in June."It looks like there will be more job movement than we hoped for," Dimon told Bloomberg TV in an interview at the World Economic Forum in Davos in January. BOFA
Bank of America Corp said in August that its businesses and results could be adversely affected and it may have to incur additional costs if Britain's exit from the European Union limits the ability of its UK entities to conduct business in the bloc. (Compiled by Noor Zainab Hussain in Bengaluru)
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Published Date: Jan 23, 2017 22:19 PM | Updated Date: Jan 23, 2017 22:19 PM