Yahoo Finance JPMorgan Brexit plans now 'past point of no return', with as many as 4,000 staff set to move from UK
JPMorgan’s Brexit plans are “past the point of no return” and as many as 4,000 staff could move in the event of no deal being agreed between the UK and the EU.
Mark Garvin, vice chairman of JPMorgan’s corporate and investment banking arm, told the Commons Treasury Committee that the bank was already well underway with plans that began in August 2016 to move operations to the continent.
“We are now in full execution mode,” Mr Garvin told MPs.
“We are in the very advanced phases of execution, in fact. A number of these initiatives are already in flight and in many cases we have passed the point of no return – they are happening.”
The US bank will migrate its commercial banking to Luxembourg and merge its European wealth management arm with its office in the principality. Frankfurt will host its investment banking and markets business.
Responding to a question referencing JPMorgan’s estimate that at least 4,000 of its 16,000 UK jobs could be moved, Mr Garvin said the eventual numbers would depend on the form of the Brexit deal.
“There is clearly a scenario where actually one does envisage that kind of outcome,” he added.
“That is not a forecast, that is a scenario,” he said of the 4,000 figure. “It is a scenario that can be mitigated by a series of arrangements.”
Contingency planning alone will result in hundreds of jobs being shifted to the continent ahead of the March deadline, he said.
Despite the job moves, Mr Garvin sought to play down the impact that a disorderly Brexit would have on JPMorgan.
“Our industry is in a constant state of flux and I can say personally we have been through far more significant tumult than this, so this is an event we can very well manage,” he said.
“Compared to what is happening as a result of digitisation and other types of disruption, this is not a massive challenge.
Bosses at Barclays Ireland and Citi also appearing before the committee said a relatively small number of jobs would move before Brexit, but warned that could increase “substantially” in future years.
Citi confirmed that 150-200 staff will be affected, while Barclays also expects around 150 to move from London – mostly to Dublin.
The bank bosses expressed concerns UK firms operating in the EU are currently being treated differently to European firms operating in this country.
The Treasury has said it is legislating for a temporary permission regime to apply to EU firms in the UK, but this is not yet reciprocal for UK firms.
