Frankfurt and Dublin court bankers in battle for Brexit jobs

Banks abstaining from moving large numbers of people till clarity on political front

LONDON/ DUBLIN: Frankfurt, along with Dublin, is emerging on top in the battle to draw highly-paid banking jobs - and the tax revenue that they bring - away from London before Britain’s departure from the European Union (EU) in March 2019.

Germany has favoured a subtle approach, with Chancellor Angela Merkel saying little if anything in public on what is a sensitive issue at home.



Irish leaders have been less reticent, but both countries have sent the same welcoming message to US, Japanese and other foreign banks - despite the public unpopularity of bankers that still lingers after the global financial crisis.

While Paris and Amsterdam are set to lure one or two major lenders, Germany and Ireland have so far secured the bulk of commitments from big-name banks.

Even then, the work of lobbyists is not over: they are pushing to host the huge business of clearing deals in euro-denominated securities, now dominated by the British capital.

Banks have been undertaking legal, financial and economic analysis in choosing new bases for their EU business if it can no longer be done from London. But they also need to know the political climate will be favourable.

“Bankers want reassurance that the government wants them,” one senior banking executive told Reuters. “Business does care about political sentiment towards them. There’s a reason: if there are problems you know that government will use its powers to help you.”

The largest global banks in London have indicated that about 9,600 jobs could go to the continent or Ireland in the next two years, though few have yet moved, according to public statements and information from industry sources.



In recent weeks Morgan Stanley, Citi and Bank of America as well as Japan’s Nomura, Mizuho and Sumitomo Mitsui have announced decisions for new EU headquarters, all opting for Frankfurt or Dublin.

These cities’ success follows year-long campaigns, as government agencies and lobby groups staged a charm offensive with the banks unseen since the 2007-09 crisis.

Banks, however, are holding off on moving large numbers of people yet, focusing on ensuring they have the right legal and operational framework to do business in the EU if Britain fails to negotiate a favourable exit deal, executives say. Citi for example has said the maximum number of jobs it may need to shift out of London is only around 150.

Published in The Express Tribune, August 19^th, 2017.

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