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Brexit may force JP Morgan to relocate jobs to Europe, bank boss warns

Published 07/07/2016

JP Morgan employs 16,000 people in the UK
JP Morgan employs 16,000 people in the UK

JP Morgan boss Jamie Dimon has warned that the bank could move thousands of jobs out of the UK if the country loses the right to sell financial services to the European Union.

Speaking to Italian newspaper Il Sole 24 Ore, Mr Dimon said: "If we have that passport after Brexit, we likely would not have to make any change at all. But I think the European Union will not accept that. It will put more conditions on the UK and might force banks to become smaller in London.

"The worst case is that we might have to relocate a few thousand people to other offices in the eurozone."

Banks and financial firms wanting to trade with a country in the European Economic Area (EEA) must hold a designated passport, giving them licence to sell products to any other country within the EEA. Without access to a passport, UK-based banks would face a significant barrier when attempting to trade with countries within the European single market.

JP Morgan employs 16,000 people in the UK, with London hosting its European headquarters.

HSBC and Goldman Sachs said prior to the vote that thousands of jobs in the City of London could be moved to the Continent in the event of Brexit.

Mr Dimon added: "Brexit has put a lot of uncertainty in the markets and in the economy. In my opinion, Brexit will slow the economy, the eEurozone, Britain, and it will do so immediately."

On Wednesday, a report warned that up to 80,000 jobs could be shifted out of London and into rival financial centres across Europe in the wake of the Brexit vote.

Around 20% of the capital's banks and financial services jobs look set to be transferred overseas, with Frankfurt trumpeted as the "most attractive location" among bankers, according to The Boston Consulting Group.

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