While the overall economic impact has been decidedly negative, the Brexit is expected to have a variety of effects, making its mark on various sectors to different degrees and hurting (or helping) some firms more than others. One of the biggest victims is the financial sector, for which London serves as a global capital. Reuters‘ Olivia Oran, Anjuli Davies and John O’Donnell look into how banks are responding to the vote:
Bank executives have been making contingency plans for months, but many were still surprised by the outcome of a British vote on Thursday evening to leave the European Union (EU). Even with those plans, huge uncertainties remain about when Britain will formally exit the EU, and what cities could replace London as New York’s transatlantic counterpart. … Among the questions being asked in C-suites across Wall Street: What’s the best European city to house a broker-dealer, if not London? Does Frankfurt have the capacity to house tens of thousands of bankers and their families? Will language be an issue in cities where English is not the primary tongue? Will American bankers abroad be able to find schools for their kids?
Frankfurt, Paris, Amsterdam and Dublin are all in contention for relocation. Even with all that uncertainty – and a timetable of at least two years for Britain to formally exit the EU – U.S. banks appeared to be moving quickly to respond to the Brexit decision. JPMorgan Chase & Co is considering changes to its legal entity structure in Europe, as well as moving some of its 16,000 U.K.-based employees, according to a staff memo signed by Chief Executive Officer Jamie Dimon and other senior executives.
Goldman Sachs Group Inc has been planning for the possibility of a Brexit vote for “many months,” Chief Executive Officer Lloyd Blankfein said in a memo. The bank has been building a new European headquarters in London, and is now considering what to do with all the space, a source familiar with the matter said.
For a fuller picture of how banks are responding, Portia Crowe at Business Insider has compiled a helpful roundup of the memos major finance CEOs sent to their employees in the wake of the Brexit referendum. Stephen Gandel at Fortune counts how many jobs Brexit might cost the City of London: