German newspaper Handelsblatt reports that US investment bank Goldman Sachs Group Inc (NYSE:GS) is planning to halve the number of employees it has in London.
If true, it would entail Goldman shifting 3,000 staff from the capital of the United Kingdom, which is half as many again as the previously mooted 2,000 job transfer.
As Britain prepares to exit from the European Union, Goldman is reportedly planning to transfer 1,000 people from London to Frankfurt, and is also mulling moving operations staff from Europe’s financial capital to Warsaw and New York.
Jens Weidmann, the head of Germany’s central bank, has previously warned that UK-based banks would be denied “passporting rights”, i.e. the right to operate across the member states of the European Union (EU), should the UK opt to relinquish membership of the single market – the so-called “hard Brexit” option - when it leaves the community.
British prime minister Theresa May rejected membership of the single market in her speech on Tuesday.
That prompted a number of banking bosses to indicate that they would probably move more staff out of London than previously anticipated, including the head honchos at JP Morgan, HSBC and UBS.
Even Lloyds of London, established in the City of London since 1688, has committed to moving some of its operations to the European mainland following the June vote by Britons to leave the EU.