Brexit information: Macron launches bitter provide to steal UK bankers – “London had all of it” | Politics | information


The French president will declare on Tuesday that Paris will be back on the global finance map when he inaugurates JPMorgan’s new commercial hub in the French capital, which he hopes will attract more bankers leaving the UK after Brexit.

The US bank’s chief executive Jamie Dimon will be one of nearly 120 international CEOs who will travel to Versailles on Monday to introduce Macron’s now traditional “Choose France” summit, where he introduces France as an investment destination.

The next day, Mr. Dimon and President Macron visit JPMorgan’s new center in central Paris, a stone’s throw from the Louvre, which will be home to around 440 employees, many of whom have moved from London.

The French President’s advisors say this is a testament to the appeal of the pro-business reforms in France that have been implemented since the former investment banker’s election in 2017.

Global banks like JPMorgan have long used London as an EU gateway, but with Brexit largely separating Britain from the block’s financial market, banks have spent millions of dollars on hubs in Paris, Frankfurt and elsewhere in the block to avoid disruption.

Dimon told shareholders in a letter earlier this year, “We could reach a turning point in many years’ time when it might make sense to move all functions serving Europe out of the UK and into continental Europe.”

An adviser to Mr. Macron told reporters, “London had it all.

“Our goal is for Paris to have everything too.”

Despite the enthusiasm of both the French president and the financial tycoon, German daily Wort reported earlier this month that JPMorgan had asked a team of around 15 London-based equity derivatives traders to move to Paris, but nearly half of them decided to stop, and others asked not to be postponed.

Other international investment banks are facing similar problems, according to informed sources. Goldman Sachs Group Inc. and Nomura Holdings Inc. reportedly struggled to convince some traders to leave London.

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Stephane Rambosson, co-founder of London-based recruitment agency Vici Advisory, said: “I’ve had a few cases of people moving to the continent and they’re really not happy.”

The European Union insists that more assets, people and businesses must move out of the City of London in the coming years.

Global banks must meet the competing demands of regulators as well as their own business needs without alienating the people they are trying to transfer.

The new French boss of Morgan Stanley told the French daily Les Echos in April that the size of the Paris office would double in the next two and a half years to around 300 employees.

Deutsche Bank AG recently decided to move around 100 corporate banking jobs from London to lower-cost locations such as Frankfurt and Dublin.

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Employees can move their jobs, but have to accept cuts in salaries.

Relocations to Frankfurt are particularly difficult to sell, reports the Bloomberg news agency after interviews with several bankers and executives.

Some Nomura dealers had expressed a desire to move to Milan or Paris instead.

Employees with school-age children are particularly reluctant to move.

Other concerns include career opportunities, pay and the smaller size of financial centers other than London.

The European Central Bank (ECB) has examined the risk management of every bank in the EU to increase the pressure.

London will likely remain Europe’s largest financial center, but European competitors want to use Brexit to strengthen their own businesses.

Morgan Stanley has announced that its Paris office will double to approximately 300 employees over the next two and a half years.

British politicians and regulators have long feared that their European counterparts are trying to poach as much financial services business as possible under the guise of reducing supervision of all euro trading.