JPMorgan might at some point transfer all of its EU-focused enterprise out of London and into Europe, the funding financial institution’s boss has stated.
Jamie Dimon stated any such transfer could be “a few years out” however warned that London might want to “adapt and reinvent itself” after Brexit.
JPMorgan’s chairman and chief govt opined that “few winners are more likely to emerge” from the UK’s choice to depart the EU which can make monetary providers fragment throughout a number of cities together with Amsterdam, Frankfurt, Paris and Dublin.
In his annual letter to shareholders, Mr Dimon wrote: “Within the quick run (ie, the following few years), this can not presumably be a optimistic for the UK’s GDP – the impact after that will probably be fully based mostly upon whether or not the UK has a complete and effectively executed strategic plan that’s acceptable to Europe.”
He added: “Brexit was completed, however many points nonetheless must be negotiated. And in these negotiations, Europe has had, and can proceed to have, the higher hand.”
The UK and EU have agreed to achieve a deal on monetary providers that are one of many UK’s most profitable exports. Nonetheless, EU officers have signalled that they’re in no rush to conclude an association. Within the meantime, European monetary hubs have been hoovering up enterprise that had London dominated till now.
JPMorgan employs round 19,000 folks within the UK together with 12,000 in London. Lots of these might have to maneuver sooner or later, Mr Dimon wrote.
“We might attain a tipping level a few years out when it might make sense to maneuver all features that service Europe out of the UK and into continental Europe,” he wrote. Paris, Frankfurt, Dublin and Amsterdam have been more likely to “develop in significance.”
He stated London was “a powerful place to do enterprise” and had the “alternative to adapt and reinvent itself” however officers must act rapidly.
“Innovation is essential to getting ready for doing the enterprise of tomorrow versus counting on the shifting methods of the previous,” he wrote.
Mr Dimon was among the many senior bankers to warn that Brexit could be dangerous for the UK’s monetary providers business. Earlier than the 2016 referendum he forecast that round 4,000 jobs might have to maneuver if the UK voted to depart the EU.
Source link
