Large US banks including JPMorgan Chase, Goldman Sachs and HSBC have told the US commerce secretary that the UK’s beleaguered Government and the slow-moving Brexit plans may lead to them moving thousands of jobs out of the City imminently.
Several financial institutions met with US commerce secretary Wilbur Ross last week at a private lunch during his London visit, the Financial Times reports.
The US banks’ executives said a lack of clarity from the Government on post-Brexit plans would force the banks to move their London operations back to the US or to other European capitals. The banks warned they are under pressure to move jobs, capital and infrastructure to meet the March 2019 Brexit deadline if no transitional deal is secured.
Catherine McGuinness, policy chair of the City of London Corporation, who headed the group’s US delegation, said the next three months will be critical in ascertaining if foreign banks will proceed with contingency plans that allow them to move up to 10,000 jobs in the short term.
“We really shouldn’t understate or underestimate what a critical moment we’re at for this sector,” McGuinness said.