The bloc has already made a land grab for London’s euro swaps clearing business, urging its banks to accelerate a shift to Europe. Deutsche Boerse AG’s Eurex Clearing has built up a 19% share of the business over recent years although it is dwarfed by London’s market share.
In recent weeks, Goldman and JPMorgan Chase & Co. have indicated that between them more than 300 staff will move to continental cities. Goldman is shifting as much as $60 billion in assets to Frankfurt, while JPMorgan is moving about $230 billion to the German city.
Consultancy EY said in a new report Monday that only 10% of big financial services firms are planning to establish or expand operations in the U.K. in the coming year, discouraged by the uncertainties of Brexit and the Covid-19 pandemic. That’s down from 45% in April.
The City of London is the UK’s cash cow and that is particularly true since North Sea oil went into decline. The City employed 360,000 people in banks and contributed £31 billion in taxes in the 2017. In the aftermath of Brexit, both those figures will be smaller but not catastrophically so.Click HERE to subscribe to Fuller Treacy Money Back to top