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Wall Street Banks Making Plans to Relocate from London Soon

Wall Street Banks Making Plans to Relocate from London Soon

Wall Street BanksRecently all the major banks and other financial institutions at Wall Street had a closed-door meeting with Wilbur Ross who is the US Secretary of Commerce. In the meeting, the companies have expressed their worries and concerns regarding the hard Brexit talks and their plans to relocate outside of London.

It was a secret meeting that was conducted when the US Secretary was on a short visit to London last week. All the senior executives from big firms like HSBC, Goldman Sachs and JP Morgan Chase attended the meeting. The most critical matter raised in the meeting was the loss faced by the banks due to the Brexit talks between the United Kingdom and the European Union.

The UK government is severely criticised for the slow processing of creating a transitional deal following Brexit. The banking institutions have pointed out that level of urgency has reached an extreme point, and they need to decide soon what their next step is going to be. All the banks and other major financial institutions have to take a significant decision soon now that Brexit is fast approaching with a point of no return. The banks have to decide where they are going to relocate their business, infrastructure, capital and operations.

Without wasting any further time, the banks have to decide whether they are going back to the United States or some other European Capital. Catherine McGuiness who was the person in charge for the US delegation group, as well as the Chairman of the City of London Corporation, stressed on the importance of progress in Brexit transitional deals with the rising fear that stock market may crash at any point in time due to the exit.

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McGuiness is of the opinion that the next three months are going to be extremely crucial for the banks that are making contingency plans for relocating outside the United Kingdom. It is reported almost 10,000 would be moved out of UK in a short span of time.

The consultant Oliver Wyman has been commissioned by TheCityUK for preparing a report on the impact of Brexit. The report stated that around 75000 jobs would be moved out of the country due to hard Brexit exit.

The Chief Executive of TheCityUK, Miles Celic, made the following statement:

It is vital that the EU and the UK avoid such a ‘no deal scenario’. This outcome will see few winners, with UK and EU customers likely to bear the brunt in the form of reduced choice and cost increases.

Ross was speaking at the annual conference of Confederation of British Industry this week and said Britain should follow the US standards after the Brexit exit to boost the trade between the nations. Only time would tell whether this move is going to appease the Wall Street banks that are threatening to move out of London due to hard Brexit exit.

Ed Lamadrid

Ed Lamadrid

I'm Ed Lamadrid, a CPA, blogger and a forex trader. Welcome to Top10FX.net. Follow my website for the most trustworthy forex broker reviews and last minute financial trading news.

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