Goldman Sachs threatens Brexit job exodus from London
The Bank of England says up to 75,000 jobs could be lost in UK financial services
The boss of Goldman Sachs, Lloyd Blankfein, has added fuel to fears the investment bank could move a large part of its UK operation to Germany with another cryptic tweet referring to the continued uncertainty surrounding Brexit.
The investment bank is investing heavily in a new London headquarters but is expected to move a significant number of staff out of the UK to Frankfurt as a result of Britain leaving the EU. Last week, Blankfein praised the German city, which is looking to establish itself as Europe’s financial capital after Brexit, saying he would be “spending a lot more time there”.
Moving staff will allow the bank to continue operations across the EU in the post-Brexit environment, when the UK will almost certainly lose financial passporting rights. “The Bank of England believes that up to 75,000 jobs could be lost in financial services following Britain's departure from the European Union,” the BBC reports this morning.
Banks need at least a year to set up fully-licensed EU subsidiaries and, without a transition deal, “the March 2019 Brexit deadline means many are beginning to execute plans to relocate jobs to ensure services for European clients are not disrupted”, says Business Insider.
HSBC has said it would wait “as long as possible” before moving jobs out of the UK to Paris.
But the bank’s chief executive Stuart Gulliver warned that continued uncertainty could curtail foreign investment in the UK and said a transitional arrangement must bring clarity about the UK’s future relationship with the remaining 27 members of the EU to reassure overseas investors.