Job flow in Investment Banking is slowing down
- The US Banks move over £200 BN from UK balance sheets, to their Frankfurt operations, while Bank of America is spending £400m on relocation costs, in terms of staff and operations, to be based from Paris.
- Barclays has now also gained permission to shift assets worth £166 BN to its Irish division, which will make it the largest bank in Ireland.
- French Banks BNP, Credit Agricole and Societe Generale have moved over 500 staff to Paris from London. Similarly HSBC has shifted ownership of its European subsidiaries to its French unit.
- UBS has made Frankfurt is new EU HQ, while Credit Suisse is relocating 250 jobs to Europe and £200m from its market division to Germany.
- Australian banks Commonwealth Bank of Australia, Macquarie, Westpac and ANZ are also in the process of moving operations out of the UK.
- Finally, more than 100 UK based asset managers have applied to the Irish central bank to be registered there
The big question with all of this, is how will London adapt? What is the future for London as a Financial Services hub if it is to be outside the EU? How will the Government compensate for the loss in tax revenues? How can London evolve so it can not just survive this, but thrive in the decade to come?
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