Morgan Stanley is going to leave London. And there will, unsurprisingly, not in Paris, despite the red carpet rolled out by the government to companies located in the uk. The bank has chosen Frankfurt as the basis for establishing a presence in continental Europe in the perspective of the output of the United Kingdom of the european Union, according to a source close to the folder, thus becoming the last american bank date to opt for, the financial capital of germany. “A solution to the short-term,” added the source, before a more in-depth assessment by the firm of the opportunity to establish its european headquarters in another city in the long term.
Major international banks seeking to establish subsidiaries in the EU to be able to continue to benefit from the european passport, which enables them to offer their services in all the countries of the area since the member countries, after the Brexit expected in march 2019. Morgan Stanley, like other banks, should spread its european operations in several countries of the EU, including its asset management activity that is likely to be transferred to Dublin, added the source.
Concretely, the us bank, which employs about 5,000 people in London, will transfer in a first time traders and also by the employees of back-office (marketing, engineers, etc.) to Frankfurt, where it will be doubled its workforce. These should go from 200 currently to 400. Bankers and traders will also be transferred to Paris, Dublin, Madrid and Milan. A spokesman for Morgan Stanley, however, refused to comment on the information that was given in the first instance by the agency Press Association.
Frankfurt’s popular
The details of the arrangements of the banks are starting to filter from the 14 July, the deadline for them to submit their plans to the Bank of England. Citigroup is expected to confirm this week the choice of Frankfurt for its base in the EU, and Barclays said on Friday, consider opening a subsidiary in Dublin. The CEO of JPMorgan Chase, Jamie Dimon, said on 11 July that his bank would probably choose Frankfurt to run its european operations after the Brexit, but with there still of the subsidiaries located in other member States of the EU.
Frankfurt seems to be by far the first choice for the centres post-Brexit banks. The japanese Nomura, Daiwa Securities and Sumitomo Mitsui Financial Group have all said consider establishing subsidiaries, as the british Standard Chartered. Not to mention the repatriation envisaged by the largest national bank, Deutsche Bank, his trading activities.
(With agencies)
