Will banks leave the UK?

re14796

UPS, hsbc, JP Morgan are saying they will move jobs out of the UK, Is this true? Or is this just a threat to get the government to get a better deal and not press for a hard brexit. Is the financial sector a good sector to work in still?

DCFC79

re14796 wrote: »

UPS, hsbc, JP Morgan are saying they will move jobs out of the UK, Is this true? Or is this just a threat to get the government to get a better deal and not press for a hard brexit. Is the financial sector a good sector to work in still?

Who knows whats going to happen.

Masomnia

No one knows.

I've little doubt some jobs will go, but I can't see any large banks moving entirely. Time will tell though...

Marktheshark

The majority will just have to make it clear they will move all their deposits (the money banks need to make money)
To a bank that will support the UK in its new future.

Hedgehog99

They might use Brexit as a cover-story for personnel changes they were going to do anyway (due to increased automation / computerisation etc).

The lure of Sterling is too strong to leave altogether, but the banks who cut branches will lose the faithful who prefer banking in person and who like to know there'll be a branch in any town they visit.

jadziad

re14796 wrote: »

UPS, hsbc, JP Morgan are saying they will move jobs out of the UK, Is this true?

The number of jobs will probably be greater than 1 (plural) and significantly less than all of them. Of course at least some small teams will move abroad. But they might have moved abroad anyway, regardless of Brexit.

re14796 wrote: »

Or is this just a threat to get the government to get a better deal and not press for a hard brexit. Is the financial sector a good sector to work in still?

The most likely outcome is a hard brexit, but there's also the aspect of people frequently underestimating the ability of EU leaders to successfuly work out of difficult negotiations. Or maybe all the talk of a hard brexit is just cementing their negotiating position - they need to be able to walk away.

Banks will also talk the talk, because they're quitekeen to make as much money as possible.

Personally, I think it will be around 10 years on WTO terms, with banks will remaining here. However, all the main European countries will try their very best to poach them, but I reckon the UK.gov will offer some serious concessions if they need to.

... alternatively, it could all go to s***. Who knows. The problem is the uncertainty, really.

asajj

I work in a very large bank and currently, no one knows. There are some projects going on to move some teams, yes. Some banks already moved some jobs however at the moment, it is as clear as the government's Brexit plan itself. In reality, many of these banks (JPM, BAML etc) have made big investments in the UK over the last 10-15 years and they won't scrap them overnight.
Also there are number of UK banks and financial services firms. So overall, yes, I believe, it will still be probably a viable sector to work for.

re14796

Are you worried asajj?

asajj

Not really nor do I want to be. I will be worried if it happens

re14796

If they do go abroad will they relocate people or just employ people aboard

steampowered

Yes, several major banks will move significant numbers of people overseas - while retaining large numbers of people in London.

Several major banks have already announced that they are intending to move personnel to Europe. See for example http://www.thisismoney.co.uk/money/news/article-4132406/HSBC-1-000-jobs-Paris-London.html.

Those job moves are not enormous compared to the scale of the banks. But the job moves will get much larger if passporting is not agreed as part of the EU negotiations. Most of the large banks do a large part of their European business from London, it will become impossible for them to do this without the benefit of a passporting arrangement legally requiring European financial regulators to let UK-regulated entities do business in their jurisdiction.

It depends what team you are in. If you are in a retail banking team (i.e. service to the man on the street), you shouldn't be affected. If you support a large corporate lending team, or a capital markets team, or an investment banking team: then the risk is higher.