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Major banks prepare to shift operations away from London after Brexit

Warning: London's financial sector could be hit by Brexit: Jeremy Selwyn
Warning: London's financial sector could be hit by Brexit: Jeremy Selwyn

Major banks are preparing to shift parts of their operations away from London as Theresa May is set to trigger Article 50.

The Prime Minister will formally begin the process of Britain leaving the EU on Wednesday.

London's economy is dominated by the financial services, leading mayor Sadiq Khan to warn Brexit could be a "catastrophe" for the sector and could have a “huge” impact on jobs in the capital.

Here is how some of London's major businesses are responding to the uncertainty around Brexit.

Goldman Sachs

The US investment banking giant played down reports that it could cut London staff in half to about 3,000 and organise transfers to New York and to a new subsidiary in Frankfurt.

However chief executive Lloyd Blankfein said that New York was already gaining from Brexit as the US bank pulled back on previous plans to expand in Britain.

HSBC

Boss Stuart Gulliver has said the bank is on course to move 1,000 jobs from its London office to France, where it already has a full service universal bank after buying up Credit Commercial de France in 2002.

Lloyd's of London

Has narrowed down its hunt for a post-Brexit European subsidiary, with Luxembourg emerging as the front runner following a board meeting in February, it is understood.

The move could see more than 100 jobs at the insurance market shifted from London to the continent.

Insurance giant AIG

Will move less than a dozen London-based executives to Luxembourg to head up a new EU subsidiary as part of Brexit contingency plans.

The company said in March that it would retain its UK headquarters but turn its Luxembourg branch - which houses three staff - into a subsidiary meant to serve continental clients from 2019.

Barclays

Is considering bulking up its Dublin offices - home to about 100 staff - after Britain leaves the EU.

It is one of a number of EU cities that the lender is eyeing as part of its Brexit contingency plans, although it is not clear whether London jobs will be moved, or if new staff will be hired.

Taxpayer-backed Lloyds Banking Group

Is expected to apply for a licence later this year that will convert its Bank of Scotland-branded branch in Berlin into an EU subsidiary.

It is understood that few jobs will leave London as a result of the move, as the 300-strong branch is already well equipped to serve European clients.

The London Stock Exchange

Has said that a "few thousand jobs" will be lost if Euro clearing operations leave the UK.

However, chief executive Xavier Rolet said the move could also trigger the loss of about 232,000 jobs financial sector across related trading, syndication, distribution, risk management and IT.

Japanese investment bank Daiwa

Is finalising plans to set up a new European base in Frankfurt, it is understood.

The office is expected to launch with less than 100 employees, staffed by a mix of local hires and transfers from other locations including London and Japan.

Daiwa has around 450 employees across Europe, most of whom are based in London - which will remain its regional headquarters.

Nomura

Is understood to be considering fully licensing its operations in Frankfurt.

The lender already has a branch in the German city, though it is unclear how many London staff may be transferred once a final decision is made.

The bank has around 3,000 staff across its Europe, Middle East and Africa operations - 2,500 based in London.

JP Morgan

Has said about 4,000 of its 16,000 UK staff could be moved out of Britain.

Chief executive Jamie Dimon said in January the number could rise or fall depending on the outcome of Brexit negotiations.

Swiss bank UBS

Has said that 1,000 of its 5,000 UK staff are involved in operations dependent on passport rights, which are expected to be lost as a result of Brexit.

US bank Citigroup

Employs about 9,000 UK staff, and is planning to shift its broker-dealer business to the EU.