JP Morgan has said it could lose a quarter of its 16,000-strong UK workforce if we do not achieve regulatory equivalence with the EU after Brexit.
Chief executive Jamie Dimon says that while it had previously revised down its estimates of the number of job losses that could result from Brexit, the long-term prospects for the bank if financial rules diverge could actually be worse than first predicted.
Speaking to the BBC at the World Economic Forum in Davos, Dimon said: “If we can’t find reciprocal recognition of rules – and there are a lot of people who are mad with the Brits for leaving and want their pound of flesh – then it could be bad. It could be more than 4000.”
Dimon added that if common rules were not agreed, London’s success as a future financial centre would be less stable, arguing that Frankfurt would be the major beneficiary.
Analysis by the bank has shown that it does not have to make immediate job cuts after Brexit, however, according to Dimon.