Germany meets bankers in Frankfurt for Brexit talks

By John O'Donnell FRANKFURT (Reuters) - Germany's top regulators met about 50 envoys from foreign banks on Monday to explain how they could move business to Europe's biggest economy after Britain leaves the European Union, German financial watchdog Bafin said. Bafin, which has been approached by numerous banks in recent weeks, said it answered questions from the banks such as how to get a banking license in Germany as well as giving its views on risk management. One official said representatives of about 25 banks had attended. The meeting underscores a growing willingness to consider alternatives to London, after Prime Minister Theresa May said that Britain would leave the EU's single market, a move that would isolate the City of London from many European clients. Peter Lutz, a Bafin official in charge of bank oversight, said the authorities wanted to help banks considering a move to understand the rules in Germany and that it was happy to have further meetings. "Brexit is ... no reason for celebration," Lutz said. "But we have to be pragmatic." Executives, chiefly those in charge of regulatory issues, from banks including Morgan Stanley , Goldman Sachs and Citigroup were to attend the meeting in Bafin's Frankfurt offices, people familiar with the matter have said. Those banks declined to comment. Many Germans are sceptical of the aggressive practices of largely U.S. and British investment banks. Nonetheless, the country's politicians are seeking to show a friendly face to banks in London searching for alternative locations in the European Union to continue selling in the bloc once Britain leaves. May has said her government will invoke Article 50 of the EU treaty, starting two years of negotiations to arrange Britain's departure, by the end of March. Frankfurt looks set to be one of the biggest winners from any exodus from London. Hubertus Vaeth, head of Frankfurt Main Finance, a group backed by local government to promote the city, has predicted that 10,000 jobs will move from London to Frankfurt over five years, with investment banks among the early movers. Germany's economic strength and the fact that Frankfurt is home to the European Central Bank makes it attractive for banks. But it faces hurdles. There is a shortage of housing, while the region's 13 international schools are already well subscribed. Nightlife in the city - where many bars are largely empty for much of the week - is also seen as a turn-off. (Reporting by John O'Donnell; Editing by Adrian Croft)