Frankfurt Is the big winner in battle for Brexit bankers

Frankfurt has emerged as the biggest winner in the fight for thousands of London-based jobs that will have to be relocated to new hubs inside the European Union after Brexit.

Morgan Stanley, Citigroup Inc., Standard Chartered Plc and Nomura Holdings Inc have picked the German city for their EU headquarters to ensure continued access to the single market. Goldman Sachs Group Inc. and UBS Group AG are weighing a similar decision, said people familiar with the matter, asking not to be named because the plans aren’t public. HSBC Holdings Plc is the biggest non-French bank so far to opt for Paris, while Bank of America Corp. has plumped for Dublin.

London could lose 10,000 banking jobs and 20,000 roles in financial services as clients move 1.8 trillion euros ($2.1 trillion) of assets out of the U.K. on Brexit, according to think-tank Bruegel. The implications for the U.K. are substantial: finance and related professional services bring in some £190 billion ($248 billion) a year, representing 12 percent of the British economy.

Currently, banks are shifting only a few of their departments, not the headquarters to access the single market, and London remains the financial capital of Europe. The fact is, however, that many banking institutions say that in the future there is no option for a complete relocation outside the island.

Source: Bloomberg Pro Terminal

Jr Trader Petar Milanov

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