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Goldman Sachs in talks to shift billions of euros to Frankfurt over Brexit

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Goldman Sachs is in talks with the European Central Bank over shifting assets and operations from London to Frankfurt ahead of the UK’s exit from the European Union, Reuters reports.

The official line from the US investment bank is that Brexit presents “numerous uncertainties” and it is working through “all possible implications” of the vote.

However, Reuters cites three sources who confirm the bank has been seeking to move under ECB supervision in Frankfurt.

The bank would need to increase its assets to €30bn (£26.bn) to qualify for ECB supervision. Its German business held assets of just €551m (£484m) in 2015, but its overall assets are higher due to other entities in Germany, according to Reuters.

The bank has also held empty office space at its Frankfurt offices that it had intended to vacate before the Brexit vote.

Frankfurt is the bank’s largest European operation outside London, but it also has smaller offices in Paris, Madrid and Milan.

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Comments

There are 4 comments at the moment, we would love to hear your opinion too.

  1. And so it begins. Remainers take no satisfaction in telling you ‘we told you so’. We import almost 40% more than we export and these imports are now going to get dearer. Inflation is rising. Major companies are considering their options and our Government blows hot air and refuses to look at the facts. Let’s hope that Mr Hammond’s Autumn statement is based in some reality.

  2. No, remainers, like me, shouldn’t be saying we told you so Harry. But we did. To be fair it is actually too early to be sure that leaving the EU is a huge mistake. The trouble is there is not much time to change our minds. We can only hope that, if people do see, in the coming months, that things are looking bad for breaking away they will not cut off their noses to spite their faces and still push it through.

  3. Some really worrying statements here, so I decided to click through to the Reuters article itself, most of which was almost as alarming…except for one or two key sentences that you could easily overlook.
    For example, GS employs 6,000 people in London, but it seems this potential move can be accommodated on only one floor of the office tower they occupy in Frankfurt…they’re not going to have much elbow room are they?
    Also, GS might need to boost its assets in Frankfurt to 30Bn Euros, representing less than 4% of the $850Bn it manages in London.
    And again, these London assets & operation covers the UK, rest of Europe, Middle East, and Africa, and the article clearly states that the European operations are pretty small in comparison to all these other areas.
    More accuracy required before it can be concluded that exiting will be the mistake you seem to believe it to be…just like with the passporting story of last week.

  4. @Kevin

    A crack in the dam is always a worry.

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