The largest global banks in London plan to move about 9,000 jobs to the continent in the next two years, public statements and information from sources shows, as the exodus of finance jobs starts to take shape.
Last week Standard Chartered and JPMorgan were the latest global banks to outline plans for their European operations after Brexit. They are among a growing number of lenders pushing ahead with plans to move operations from London.
Goldman Sachs chief executive Lloyd Blankfein said in an interview on Friday that London’s growth as a financial centre could “stall” as a result of the upheaval caused by Brexit.
Thirteen major banks including Goldman Sachs, UBS, and Citigroup have given an indication of how they would bulk up their operations in Europe to secure market access to the European Union’s single market when Britain leaves the bloc.
Talks with financial authorities in Europe have been under way for several months, but banks are increasingly firming up plans to move staff and operations.
“It’s full speed ahead. We are in full motion with our contingency planning,” said the head of investment banking at one global bank in London. “There’s no waiting.”
Although the moves would represent about 2 per cent of London’s finance jobs, Britain’s tax revenues could be hit if it loses rich taxpayers working in financial services.
The Institute for Fiscal Studies – a think tank focused on budget issues – said in a report on Thursday the rest of the population will have to pay more if top earners move.
The exact number of jobs to leave will depend on the deal the British government strikes with the EU. Some politicians say bankers have exaggerated the threat to the economy from Brexit.
The plans of large banks such as Credit Suisse and Bank of America and many smaller banks are still unknown.
Source: The Globe and Mail