US banks shifting some staff ahead of Brexit

With two months until Brexit takes effect, US banks have begun transferring some London staff to Continental Europe and drawing up contingency plans in case of a “hard” Brexit. Around 400 Bank of America employees are set to transfer to Paris and Frankfurt starting in February, according to a person familiar with the matter. About half of this group -- or 200 people -- will be in place before the March 29 Brexit deadline, with the remainder following soon after.

The biggest US bank by assets, JPMorgan plans to shift “several hundred” jobs from London to the Continent and had already moved a handful employees at the end of 2018. It has informed other British staff of relocations, said a source close to the situation. The person did not specify where in Europe the employees went. JPMorgan currently has offices in Frankfurt, Paris, Milan, Dublin and Luxembourg. Goldman Sachs has beefed up its staffing in both Frankfurt and Paris so that it can react “seamlessly” to clients starting March 29, according to a person close to the situation.

Citigroup, which is present in 20 of the 27 EU countries, at the end of 2018 transferred 63 London-based employees to the Continent, including 45 traders, said a person familiar with the bank’s plans. Prior to Brexit, US banks had shown a preference to situate many functions in London that could do business with the entire EU bloc of countries. But in cleaving London from the EU, Brexit is expected to restrict the EU work of British staff. “We’ll be ready for our European clients on day one,” said a spokesperson for JPMorgan Chase.