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Wednesday, July 12, 2017

The Brexit hangover starts to kick in

Ministers may well be deep into negotiations on the terms of the UK's exit from the European Union but many businesses are not waiting around to see the outcome.

As the Independent reports, one American bank with 16,000 UK staff has warned that up to three-quarters of its workforce could be transferred to EU countries after Brexit. The Chief Executive of JP Morgan has warned that he can see thousands of its bankers moved across the Channel once Britain cuts ties with Brussels:

Jamie Dimon said current plans allowed for "several hundred" of the bank's UK jobs to move to the EU after Britain's divorce from the bloc.

But he warned that that number could balloon.

"If the EU determines over time that they want to start to move a lot more jobs out of London and into the EU, they can simply dictate that," he said during a panel discussion at the Paris Europlace International Financial Forum on Tuesday.

The banking boss explained the majority of the bank's UK operations are actually aimed at serving clients across the EU27, putting the majority of those positions at risk of being moved out of the country.

"We have 16,000 people in the UK but ... 75 per cent of that is servicing EU companies, and if regulators say one day, you know, 'we're not comfortable with your risk people, your lawyers, your compliance being in the UK' they can make us move it.

"So we will simply be subject to what they do down the road."

JP Morgan revealed earlier this year it would be anchoring its EU operations in three cities, including Dublin, Frankfurt and Luxembourg.

It is of course not for me to say 'I told you so' but..................I did suggest this would happen before the referendum as did many others.
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