John Cryan, the new CEO of Deutsche Bank, told investors at a conference in New York recently that a Brexit would spur international investment banks to move jobs or activities away from London.
Cryan joined other financiers who have warned about this since some products can’t be traded outside the EU without specific agreements. He added: “The biggest initial issue would be market turbulence … Our plan would obviously be to hedge out as much risk as we can.”
In 2015, the German bank announced it was studying the potential impact of Britain’s exit from the EU on the its business in the country and weighing options that may include moving activities to Germany. In early May, Cryan mentioned Deutsche Bank in its current strong setup in Frankfurt and London is well positioned to steer through possible short- and long-term consequences of a Brexit.
Stuart Gulliver of HSBC added the lender would likely need to move 1,000 investment bankers to Paris because they’re linked to operations governed by EU rules.
If you want to harness the wisdom and insights from the crowd to monitor your portfolio free of charge, please sign up for myMarkets.