London loses 800 billion euros against Frankfurt as banks prepare for Brexit | Policy

London will lose up to 800 billion euros of badets in favor of its Frankfurt financial hub by March 2019, as banks begin to transfer their activities to the German city before the end of the year. Brexit.

The pressure group Frankfurt Main Finance released this figure after it was confirmed that 30 banks and financial companies had chosen the city as the site of their new headquarters in the EU.

But with several banks, including JP Morgan, Goldman Sachs and Morgan Stanley, planning to expand their operations in several cities, including Dublin and Paris, the pressure group believes that the number of companies committed to developing or opening offices in Frankfurt will be closer. at 37.

In the end, this will mean that London badets worth several billion pounds will be absorbed by German companies in a few months.

"In total, we expect a transfer of 750 to 800 billion euros of badets from London to Frankfurt, the bulk of which will be transferred in the first quarter of 2019," said Hubertus Väth, managing director Frankfurt Main Finance.

Banks, insurers and other financial services companies are in a race against time to obtain licenses and strengthen their workforce on the continent before Britain leaves the EU.

Without a comprehensive trade agreement between the United Kingdom and the European Union covering financial services, companies may not be able to replace their lost pbadport rights, which currently allows them to serve their customers in the future. whole block.

The proposed withdrawal agreement for Brexit still needs Parliament's approval, questioning a transitional period that would prolong cross-border bank access until December 2020. This means that companies have no choice but to transfer employees, badets and British customers in preparation. for a scenario without transaction and without transition.

"Banks are faced with the choice of only transferring what is absolutely necessary or preparing for the transfer of the whole sector," Väth said.

"In any case, it is clear that considerable second-round effects will ensue," he added, pointing out the possibility that other job losses and movements will occur. Assets are looming on the horizon.

Lloyds, Standard Chartered, Credit Suisse, Citigroup and Nomura are among the banks planning to expand or create new offices in Frankfurt in light of Brexit.

City Minister John Glen confirmed last month that the Bank of England estimated that the UK would lose about 5,000 jobs in City by March 29, 2019, when the UK One would leave the EU.

However, Frankfurt Main Finance estimates that up to 20,000 jobs could be transferred to Frankfurt by 2022.

This month, Germany is on the brink of easing its labor legislation, seen as an obstacle to creating more jobs in the banking sector.

The changes were first proposed as part of a government coalition agreement after the March German elections, and will make it easier for companies to return high-income bankers.

"Politicians have listened, promised and kept," Väth said. "This is a clear sign that the relocation of banks in Germany is desired. It is a sign that is seen and appreciated. "