Goldman To Help Bankroll EU 'In' Campaign

Goldman Sachs (NYSE: GS-PB - news) has donated hundreds of thousands of pounds to the campaign to keep Britain in the European Union, underscoring City firms' concerns about the implications of 'Brexit'.

Sky News can exclusively reveal that Goldman has agreed to give what insiders said was a "substantial six-figure sum" to Britain Stronger in Europe, the group chaired by the former Marks & Spencer (Other OTC: MAKSF - news) boss Lord Rose.

The donation, on which Goldman declined to comment, reflects deepening anxiety among the Wall Street bank's senior executives about the potential economic disruption that they believe a British exit from the EU would cause.

Its decision to invest a substantial sum in the campaign makes Goldman, which employs 6,000 people in the UK, one of the most prominent donors to either side of the looming EU referendum campaign.

A source close to the bank insisted that it should not be interpreted as a partisan political intervention, while the precise sum that it has donated was unclear.

The rules governing official campaign spending mean that both the officially-designated 'In' and 'Out' groups can spend £7m in the final 10 weeks before the poll.

However, each political party is also allocated a sum to spend determined by their share of the vote at the last General Election, and with the Conservatives, Labour and the Liberal Democrats all likely to back the 'In' campaign, it will be able to significantly outspend its rival.

The Electoral Commission requires registered campaign groups to submit a list of donors prior to a referendum.

Goldman is thought not to be the only big bank which has agreed to help fund the 'In' campaign: City insiders told Sky News on Wednesday that other firms had also agreed to commit money in recent weeks.

Wall Street's concerns about the impact of Brexit relate to both the likely end to the UK's ability to access the EU's single market in financial services, and the wider corporate uncertainty that many financiers believe would ensue.

Pro-Brexit campaigners argue that leaving the EU would allow Britain to negotiate more advantageous trade deals, and that the City would be largely unaffected.

Only the UK Independence Party, whose donors include the Express (NYSE: EXPR - news) newspaper titles' owner Richard Desmond, will publicly call for such an outcome.

Goldman's in-principle support for the UK's membership of the EU is long-standing.

In 2013, the co-chief executives of Goldman Sachs International wrote in The Times that Brexit would be contrary to Britain's national interest.

"Our location in London allows us to use the professional expertise in the City to serve broader European and global markets," Richard Gnodde and Michael Sherwood wrote.

"And from discussions with peers and clients we know our situation is far from unique. Large international and European companies see a Britain divorced from the EU as a much less attractive place. Threats to British involvement in the EU are threats to British business."

More recently, the executive who runs Goldman's asset management division also warned against Brexit, saying the argument for remaining in was "compelling".

In addition to Lord Rose, Britain Stronger In Europe's board includes Baroness Brady, one of the stars of The Apprentice; Brendan Barber, the former secretary-general of the Trades Union Congress; and Lord Mandelson, the former Business Secretary.

A number of high-profile City figures have, however, adopted the opposing position, including Crispin Odey, the hedge fund manager, and Helena Morrissey, the boss of Newton Investment Management, who believes the risks of Brexit have been overstated.

Alongside market turmoil prompted by the oil price and China's economic slowdown, the question of Britain's EU membership is one of the biggest talking points at this year's World Economic Forum in Davos.

Sky News revealed earlier on Wednesday that David Cameron, who is in Davos, had urged business leaders to publicly back his reform negotiations ahead of next month's crucial EU summit.

The news of Goldman's donation to the 'In' campaign comes on the same day that the bank reported a slump in profits for the fourth quarter of last year, triggered by a $5bn settlement for mis-selling mortgage-backed securities before the 2008 financial crisis (Other OTC: UBGXF - news) .