JPMorgan Chief Executive Officer Jamie Dimon has warned that the investment bank faces job cuts in the UK if the country votes to leave the European Union in this month’s referendum. He added that a Brexit vote would result in long-term uncertainty for the UK and EU economies.
If the U.K. leaves the EU, the bank may have no choice but to re-organise its business model.
If the UK leaves the EU, the bank, which has more than 16,000 employees across Britain, may have no choice but to reorganise its business model, according to Dimon, who is of the belief that Brexit could mean fewer JPMorgan jobs in the U.K. and more jobs in Europe.
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Dimon joins others who have warned Brexit would push international securities firms to move jobs or activities because some products can’t be traded outside the EU without specific agreements.
According to Bloomberg, Stuart Gulliver of HSBC Holdings has also said the bank would likely need to move 1,000 investment bankers to Paris due to being linked to operations governed by MiFID II, the EU rules covering everything from derivatives trading to bond pricing.
Further discussing the possible scenario, Dimon said: “One realistic outcome is that we lose the ability to passport our banking and trading services into Europe. But our clients will still need us to trade within what will then be the EU. If that’s what the rules say, we will need to do what works.”
Dimon added that some EU countries may require the bank to move jobs to the continent should Brexit go ahead but said he had not decided which country the bank might move employees.
He concluded: “My observation of the facts is that a vote to leave would be a terrible deal for the British economy”.