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What the world’s biggest banks say about fleeing Brexit-Britain

Some 35,000 jobs could be relocated from UK with many of them coming to Dublin


Frankfurt and Dublin are emerging as the biggest winners at London’s expense as banks prepare for Brexit by planning new hubs in the European Union. Standard Chartered and Barclays are set to choose the capital as their EU base for ensuring continued access to the bloc, according to sources with knowledge of their contingency plans.

Goldman Sachs, Citigroup and Lloyds Banking Group are eyeing Frankfurt, other sources said.

Banks are fleshing out their plans after British prime minister Theresa May announced in January that the UK would leave the EU’s single market in 2019, likely spelling the end of passporting, where banks seamlessly service the rest of the bloc from their London hubs.

Frankfurt is a natural pick for firms fleeing London given a financial ecosystem featuring Deutsche Bank, the European Central Bank and BaFin, one of the only regulators with experience of overseeing complicated derivatives trading.

As for Ireland, it’s presenting itself as a low-tax, English-speaking location with similar laws and regulations to Britain. All told, TheCityUK lobby group reckons as many as 35,000 jobs could be relocated. Bloomberg News conducted interviews and reviewed public statements to discover what each major bank is now planning.

Goldman Sachs
The Wall Street firm is considering making Frankfurt its main hub inside the EU and could move as many as 1,000 employees, including traders and senior managers, according to a person familiar with the matter. Chief executive Lloyd Blankfein has publicly said the bank has shelved plans to move more key operations to the UK.

We were on track to move more and more of our global activities, so global [operations], global tech – all those things made more and more sense to operate out of the UK,” because of the time zone, Mr Blankfein said in an interview in Davos, Switzerland, in January. “Now, we’re slowing down that decision, and only moving there what we have to move there. We don’t value doing things twice; moving them there and then moving them away from there.”

Jimirasire

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