Yes, the Brexit is in the minds of many British people. Future, Consequences, Advantages ... Questions are forthcoming. Unfortunately, it will take a few more years before we can truly realize the fallout from the famous referendum. If employees and small businesses are waiting until agreements are created and signed, big banks established in England have already made decisions about their future and their collaborators'. So, how are major financial institutions anticipating the Brexit? Focus.
Big banks: post-referendum decisions
- HBSC, and more specifically it's CEO Stuart Gulliver, announced that major commercial operations, in particular those generating more than 20% of its revenues, would be sent to the French capital. The businessman said the move would begin within two years, when the Brexit will become effective.
- UBS plans to anticipate the worst scenario. If no official move has yet been announced, Andrea Orcel, the director of the bank does not hide his dislocations plans. According to Axel Weber, the president of the bank, a thousand London jobs out of the existing 5,000 could suffer from the consequences of Brexit.
- Goldman Sachs, who had planned to bet a lot on London announced to develop the potential of other branches located within other countries. This decision to slow down London's activities has already benefited to the bank in New York. France, Spain and Poland will welcome about a thousand new employees from the UK. According to Mr. Helselsblatt, the number of London employees could be halved, going from 6,000 to 3,000. However, Goldman Sachs said that no final decision had yet been taken.
- Lloyd's has been in London since 1688. This is surely one of the reasons for why the insurance market will not close its doors in the UK. However, the company has announced the opening of a subsidiary in a European country to continue to offer its services with ease to the inhabitants of the continent.
- Barclays is one of the only ones to believe in London's financial prosperity once the Brexit is in place. Thus, the decision-makers have not made any decisions regarding future moves or restructurings.
- JP Morgan, in particular its boss Jamie Dimon, announced that more jobs than originally planned would be moved in other countries. However, Europe and its prosperity do not fully convince Mr Dimon who said that the continent's policy was at risk. According to him, its subsistence is not certain. No figures concerning job moves have been revealed. According to the officials, everything will depend on the new laws that will result from the Brexit and the arrangements signed with the European Union.
As you can see, even if the big banks are taking their time to make the most important decisions about job moves and the development of subsidiaries abroad, it is certain that many firms are already anticipating future agreements and are currently developing plans to make the best out of the Brexit.