EU power grab fails: Swathes of influential bankers REJECT desperate plea to move to Paris
BBC host: Few bankers have relocated from London
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Swathes of bankers working for JPMorgan Chance & Co., Goldman Sachs, and Nomura Holdings, have reportedly refused to move from London when offered new positions across the EU.
JPMorgan asked a team of around 15 London-based equity derivatives traders to move to Paris according to German daily Wort.
But almost half of them decided to quit and others asked not to be moved.
Other international investment banks have been facing similar problems, according to informed sources. Goldman Sachs Group Inc. and Nomura Holdings Inc. have reportedly had a hard time convincing some traders to leave London.
Stephane Rambosson, co-founder of London-based recruitment agency Vici Advisory said: “I have some cases of people moving to the continent and they are really not happy.”
The European Union insists that more assets, people and businesses will have to 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 employees they want to transfer.
The new French boss of Morgan Stanley told the French daily Les Echos in April 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 jobs in its corporate banking division from London to lower-cost locations such as Frankfurt and Dublin.
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Employees can move with their workplaces, but they have to accept a cut in salary.
Moves to Frankfurt are particularly difficult to sell, reports the Bloomberg news agency after interviews with several bankers and executives.
Some Nomura traders had expressed the wish 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 centres other than London.
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No bank wanted to make an official statement on the subject.
The European Central Bank (ECB) has launched a probe into each bank’s risk management setup in the EU in an effort to ramp up the pressure.
London is likely to remain Europe’s largest financial hub, but European rivals want to use Brexit to help bolster their own operations.
Morgan Stanley has revealed its Paris office is expected to double in size over the next two and a half years to about 300 people.
UK politicians and regulators have long feared their European counterparts are attempting to poach as much financial services business as possible under the guise of repatriating oversight of all euro-based trade.
In the past, banks used London as a hub to “passport” their financial services into the Continent.
But Brexit means the UK has lost its unrestricted access and many lenders have been forced to set up or bolster their operations inside the EU.
Banks have so far been reluctant to push through the wholesale changes demanded by the EU amid hope a new financial services pact can be reached between Brussels and the UK.
Christian Ossig, General Manager of the Association of German Banks, in a video conference in front of journalists on Monday, said: “Brexit underlines the urgency of making progress on the European single financial market.”
Additional reporting by Monika Pallenberg.
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