Further Brexit induced staff shifts confirmed
(19 November 2019 – United Kingdom) Citigroup could move more staff from London to Dublin or the Frankfurt based broker-dealer arm depending on client reaction to Brexit according to the US bank’s European CEO Zdenek Turek.
Citi is already creating up to 200 new roles in existing EU offices as a direct reaction to protracted Brexit deliberations after confirming at least 60 roles were definitely shifting away from London.
New Financial reports that of the 332 financial institutions preparing for Brexit by moving business, staff, assets or legal entities into the European Union, 115 had relocated to Dublin ahead of Luxembourg (71), Paris (69), Frankfurt (45) and Amsterdam (40). EY estimated that 7000 jobs had been shifted out of London to date, along with £1 trillion in assets however City of London Lord Mayor Peter Estlin argued that 35,000 new jobs had been created in the City since Brexit.
Mr Turek welcomed German finance minister Olaf Scholz’s attempt to move ahead on European banking integration, adding that he would like deeper capital markets as well as a banking union. Mr Scholz has suggested Germany may consider easing its opposition to deposit guarantees, an offer that came with a list of demands aimed at reducing risks in the European banking sector. Europe’s banking union needs ‘urgent deepening’ and Germany expects to see the first signs of progress within the next month in its push to speed integration.
“There is a combination of our own interests and regulatory requirements, and if we have to move more people to support those functions. We need a decision. People have made decisions, spent money on platforms that are ready to go but aren’t fully functioning yet because moves have not happened yet. There is an element of cost associated with that, and the same goes for our customers” stated Citibank Europe CEO Zdenek Turek, suggesting the New York based lender could move more of its 2,500 staff.
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