Brexit: JPMorgan reportedly moving €200bn to Frankfurt by end of year

Cornelia Mascio
Settembre 24, 2020

JP Morgan is reportedly planning to move about €200 billion from the United Kingdom to Frankfurt due to Brexit and plans to finish the migration by the end of the year, Bloomberg reports citing people familiar with the matter.

The bank has reassigned branches in European hubs including Paris, Amsterdam and Copenhagen to oversight by the Frankfurt subsidiary, which is known as J.P. Morgan AG.

With less than four months to go until the Brexit transition period expires, worldwide banks have been beefing up operations in the European Union to make sure they can service clients given the prospect that United Kingdom -based firms, including JPMorgan's London operations, won't retain passporting rights in a trade deal. However, about 200 of its 12,000 London staff were told last week to move to European cities including Paris, Frankfurt, Milan and Madrid.

The source did not specify what type of assets JPMorgan was moving to Germany, but for banks making similar moves, it would typically include cash and financial securities such as stocks and bonds that banks hold in inventory for clients to trade.

A spokesman for JPMorgan declined to comment.

The shift in assets represents part of banks' routine planning for life after Britain leaves the European Union, when they will likely no longer be able to book their entire trading operations for the contintent out of London.

Global banks have been moving assets and making changes to their operations to ensure they can continue to function fully if there is no deal between the United Kingdom and the European Union on market access once the transition period ends at the turn of the year.

JPMorgan plans to finish the migration of assets to its Frankfurt-based subsidiary by the end of 2020, according to Bloomberg News which first reported the asset shift earlier on Wednesday.

Last year, consultancy EY said assets worth almost $1 trillion were being moved from Britain to new financial hubs in the European Union ahead of Brexit.

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