[ad_1]
NEW YORK, 1 February – Two months before the entry into force of Brexit, US banks have begun transferring part of their staff to London in continental Europe and drawing up contingency plans in case of "difficult" Brexit .
About 400 Bank of America employees are expected to be transferred to Paris and Frankfurt from February, according to a person familiar with the matter.
About half of this group – 200 people – will be in place by the Brexit deadline of March 29, and the rest shortly thereafter.
JPMorgan, the largest US bank in terms of badets, plans to transfer "several hundred" jobs from London to the mainland and has already transferred a handful of employees by the end of 2018. She has informed other British employees of relocation, said a source close to the situation. .
The person did not specify where the employees had gone to Europe. JPMorgan currently has offices in Frankfurt, Paris, Milan, Dublin and Luxembourg.
Goldman Sachs has increased its staff in Frankfurt and Paris to be able to react "seamlessly" to customers from March 29, according to a person close to the situation.
Citigroup, which is present in 20 of the 27 EU countries, in late 2018 transferred 63 London-based employees to the continent, including 45 traders, said a person familiar with the bank's plans.
Prior to Brexit, US banks had preferred to place many functions in London capable of dealing with all the countries of the European Union.
However, in the London cleavage of the EU, Brexit should restrict the work of British personnel in the EU.
"We will be ready for our European customers from day one," said a JPMorgan Chase spokesperson.
The fallout of the yellow vest?
The group of workers transferred from London includes traders and vendors. Banks have also recruited new employees to the continent, sources said.
The fact that the banks are sticking to their plans for expansion in Paris is a sign that the financial giants have not been too upset by the so-called "yellow vest" protests that have acquired a international notoriety after clashes with the French police.
The protest of the yellow vest "does not change our plans," said Jamie Dimon, chief executive of JPMorgan Chase, earlier this month during a conference call with reporters. "The real problem is whether there will be a difficult Brexit or not."
Some banks have made arrangements to allow staff to travel to London over an interim period due to family commitments before the transfer is permanent.
Hard Brexit?
Until now, transfers of professionals from the bank were limited as the financial sector hoped that Britain and Brussels could agree on a two-year transition period.
Sources close to the banks, however, said that the number of relocations could increase if the positions hardened by the end of February and if the banks concluded that the differences were irreconcilable.
"We still do not believe it will be (a difficult Brexit) because it will be very difficult for Britain and the EU, so we expect a transitional withdrawal agreement," said Dimon, of JPMorgan .
But as March 29 gets closer, many experts are worried about the worst scenario feared by Brussels, London and beyond.
The risk of a Brexit without agreement "has increased," warned the President of the European Commission, Jean-Claude Juncker.
Major US banks have been preparing for such a worst-case scenario to ensure the functioning of the banking system, banking sources said.
Federal Reserve Chairman Jerome Powell, who described Brexit as an "unprecedented event," said this week that the US central bank was working with US financial institutions operating in Britain and the EU.
"We have watched Brexit closely for a long time," Powell said.
"We have worked with these institutions alongside UK and European regulators to ensure that these companies have projects and … everything they will need to manage the overall Brexit results." – AFP
Source link
