Goldman Sachs Mulls Move Out of UK into Frankfurt as Brexit Looms
- Goldman Sachs is the latest lender to contemplate a move out of the UK with Brexit looming.
The repercussions of Brexit Brexit Brexit stands for British Exit, or in reference to the United Kingdom’s decision to formally leave the European Union (EU) as declared in a June 23, 2016 referendum. In a more immediate sense, a tight vote and unexpected result helped drive British pound (GBP) to lows that had not been seen in decades.The day following the referendum, former Prime Minister David Cameron resigned from office where he was replaced by Theresa May, who later resigned from office on June 7th, 2019. Active Prime Minis Brexit stands for British Exit, or in reference to the United Kingdom’s decision to formally leave the European Union (EU) as declared in a June 23, 2016 referendum. In a more immediate sense, a tight vote and unexpected result helped drive British pound (GBP) to lows that had not been seen in decades.The day following the referendum, former Prime Minister David Cameron resigned from office where he was replaced by Theresa May, who later resigned from office on June 7th, 2019. Active Prime Minis Read this Term are still being felt, not just for UK-based lenders but other banks and companies operating in the country. Goldman Sachs is one such bank that has toiled with the notion of shifting some of its assets out of the UK into Frankfurt, one of the main commercial hubs on the European continent, per a Reuters report.
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The decision is hardly unusual as many other banks have grappled with similar strategies. Overwhelmingly, UK banks have opted to cut costs aggressively, as well as slash workforces in the country, namely London as revenues and profitability have been lacking in recent quarters, drawing the ire of share holders.
Goldman Sachs conducts business worldwide, thought the advent of the Brexit has changed the way lenders and companies approach the UK, given the absence of passporting privileges. The move would also help secure access for the US bank into the European Union (EU), ultimately helping shore up its positioning post Brexit.
Ahead of the eventual schism, the bank is also examining the move as a means of qualifying for supervision by the European Central Bank (ECB), thus putting a portion of its operations under the specter of the EU’s principle banking regulator.
The main impetus behind a move would also allow Goldman Sachs to continue offering its services to the overall Eurozone following the Brexit – complicating the matter somewhat are the legal entanglements as the situation is unprecedented and will be navigating unchartered territory once a formal split between the UK and EU is consummated.
The decision is hardly a done deal, though largely mirrors the strategy deployed by other banks operating in the UK. On a broader scale, an exodus out of the UK into a locale such as Frankfurt would also represent a changing of the guard, with the torch passing from London to the German Hub Hub A hub as its name suggests describes the center of activity or a focal point. In terms of finance, the term hub can refer to Hub and Spoke Trading or a liquidity hub. However, the terms are not interchangeable, but they do overlap. Hub and Spoke trading refer to a network that posts bids and offers for an asset and therefore creates a real market. For example, Hub and Spoke trading allow traders to see the other submissions and offers from other traders on the platform. This is a popular method A hub as its name suggests describes the center of activity or a focal point. In terms of finance, the term hub can refer to Hub and Spoke Trading or a liquidity hub. However, the terms are not interchangeable, but they do overlap. Hub and Spoke trading refer to a network that posts bids and offers for an asset and therefore creates a real market. For example, Hub and Spoke trading allow traders to see the other submissions and offers from other traders on the platform. This is a popular method Read this Term, or perhaps another city.
The repercussions of Brexit Brexit Brexit stands for British Exit, or in reference to the United Kingdom’s decision to formally leave the European Union (EU) as declared in a June 23, 2016 referendum. In a more immediate sense, a tight vote and unexpected result helped drive British pound (GBP) to lows that had not been seen in decades.The day following the referendum, former Prime Minister David Cameron resigned from office where he was replaced by Theresa May, who later resigned from office on June 7th, 2019. Active Prime Minis Brexit stands for British Exit, or in reference to the United Kingdom’s decision to formally leave the European Union (EU) as declared in a June 23, 2016 referendum. In a more immediate sense, a tight vote and unexpected result helped drive British pound (GBP) to lows that had not been seen in decades.The day following the referendum, former Prime Minister David Cameron resigned from office where he was replaced by Theresa May, who later resigned from office on June 7th, 2019. Active Prime Minis Read this Term are still being felt, not just for UK-based lenders but other banks and companies operating in the country. Goldman Sachs is one such bank that has toiled with the notion of shifting some of its assets out of the UK into Frankfurt, one of the main commercial hubs on the European continent, per a Reuters report.
Don't miss your last chance to sign up for the FM London Summit. Register here!
The decision is hardly unusual as many other banks have grappled with similar strategies. Overwhelmingly, UK banks have opted to cut costs aggressively, as well as slash workforces in the country, namely London as revenues and profitability have been lacking in recent quarters, drawing the ire of share holders.
Goldman Sachs conducts business worldwide, thought the advent of the Brexit has changed the way lenders and companies approach the UK, given the absence of passporting privileges. The move would also help secure access for the US bank into the European Union (EU), ultimately helping shore up its positioning post Brexit.
Ahead of the eventual schism, the bank is also examining the move as a means of qualifying for supervision by the European Central Bank (ECB), thus putting a portion of its operations under the specter of the EU’s principle banking regulator.
The main impetus behind a move would also allow Goldman Sachs to continue offering its services to the overall Eurozone following the Brexit – complicating the matter somewhat are the legal entanglements as the situation is unprecedented and will be navigating unchartered territory once a formal split between the UK and EU is consummated.
The decision is hardly a done deal, though largely mirrors the strategy deployed by other banks operating in the UK. On a broader scale, an exodus out of the UK into a locale such as Frankfurt would also represent a changing of the guard, with the torch passing from London to the German Hub Hub A hub as its name suggests describes the center of activity or a focal point. In terms of finance, the term hub can refer to Hub and Spoke Trading or a liquidity hub. However, the terms are not interchangeable, but they do overlap. Hub and Spoke trading refer to a network that posts bids and offers for an asset and therefore creates a real market. For example, Hub and Spoke trading allow traders to see the other submissions and offers from other traders on the platform. This is a popular method A hub as its name suggests describes the center of activity or a focal point. In terms of finance, the term hub can refer to Hub and Spoke Trading or a liquidity hub. However, the terms are not interchangeable, but they do overlap. Hub and Spoke trading refer to a network that posts bids and offers for an asset and therefore creates a real market. For example, Hub and Spoke trading allow traders to see the other submissions and offers from other traders on the platform. This is a popular method Read this Term, or perhaps another city.