Banks warn of Brexit dangers
(20 January 2017 – Europe) Two European banks warn that 2,000 jobs may leave London as financial institutions mitigate disruption caused by the UK’s EU referendum, and the Government’s recent discussions on a “hard” exit from the single market.
UBS Chairman Axel Weber said that around one-fifth of the bank’s London staff could be affected, while HSBC Chief Executive Stuart Gulliver said his bank will relocate a similar number to Paris.
A German newspaper also reported that Goldman Sachs may halve its 6,000 strong London workforce, shifting operations to its New York headquarters and mainland Europe, particularly Germany’s financial hub Frankfurt.
"We will move in about two years’ time when Brexit becomes effective," HSBC's Gulliver told Reuters at the annual meeting of the World Economic Forum.
And in another potentially damaging blow to London's status as Europe's main financial centre, UBS's
Weber added that that London’s status as the continent’s financial centre would be placed under further pressure as businesses lost their ability to sell financial services in Europe, potentially affecting an additional 1,000 jobs.
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