German lender Deutsche Bank has announced today that the company is contemplating moving about 4,000 jobs from London. The uncertainty around Brexit is leading the company to make contingency plans.
The statement was made by the company’s Chief Regulatory Officer, Sylvie Matherat. The news comes as continuing uncertainty over the terms of the Brexit deal for the UK causes worry companies in the City.
Deutsche Bank is said to have over 9,000 staff in the UK with 7,000 of them based in London. Front office and support for EU clients could be forced to relocate to the continent. The bank is considering its Frankfurt headquarters to be the most likely destination for new jobs.
The number of financial services jobs which the UK is set to lose from Brexit could reach 232,000
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In the meantime the Bank of England has set a mid-July deadline for UK-based banks to provide the regulator with detailed plans about their Brexit strategy. The central bank asked firms to consider adverse scenarios, such as a ‘hard Brexit’.
There is a range of estimates compiled by a number of surveyors about the number of financial services jobs which the UK is set to lose from Brexit. Estimates range between 10 to 232,000.
JPMorgan is said to have been looking at an office space in Dublin, while Lloyd’s is said to be considering Brussels. Paris and Frankfurt are other obvious choices for banks that decide to relocate staff to the continental part of Europe.
Until a clear path to Brexit is negotiated, all of the numbers and the calculations will be subjected to revision. A disorderly exit from the European Union is certain to push large numbers of financial services employees out of the UK.