Business
14:37, 26-Nov-2017
JP Morgan, eyeing Brexit, rents more space in Frankfurt: source
["china"]
Share
Copied
US investment bank JP Morgan has become the latest big bank to respond to Britain’s looming exit from the European Union by renting extra office space in Germany to accommodate more staff.
A source familiar with the matter told Reuters on Friday that the banking giant had rented enough room in the Taunusturm in the German financial capital Frankfurt for 200 staff, while it could fit more into its existing offices in the 40-story skyscraper.
The news came days after CEO Jamie Dimon held face-to-face talks with UK Prime Minister Theresa May to discuss Brexit.
Slow progress in negotiations with Brussels has raised fears of a so-called “hard Brexit” that would cause banks running their regional operations out of London to face barriers to doing business on the continent.
JP Morgan plans to build hubs in Frankfurt, Dublin and Luxembourg – it already has banking licenses in all three. Exactly which functions will be hosted at which location has yet to be decided, the source said, requesting anonymity due to the sensitivity of the matter.
JP Morgan joins an exodus in which competitors like Goldman Sachs – which is expanding in Frankfurt and Paris – are shifting operations to more than one location, a reflection of the sheer scale of London’s financial district and how difficult it would be to replicate operations elsewhere in short order.
The Frankfurter Allgemeine newspaper first reported on JP Morgan’s decision to rent more space in the Taunusturm, saying it would be able to accommodate up to 300 staff in addition to the 450 already based in the 170-meter building.
JP Morgan declined to comment on the report.
Source(s): Reuters