Frankfurt, Paris ‘to get most Goldman Brexit jobs’

Frankfurt is set to sweep up thousands of finance jobs after Brexit. [Elpisterra/Shutterstock]

Frankfurt and Paris are expected to gain the most jobs from Goldman Sachs as it transfers staff out of London due to Brexit, a person familiar with the matter said Tuesday.

Paris, Frankfurt and other European cities have been on a charm offensive with global financial giants since the June 2016 Brexit vote, eyeing the additional that jobs will serve European Union clients once Britain leaves the bloc.

Frankfurt, home to the European Central Bank, already has claimed some major financial players, including US companies Citigroup and Morgan Stanley and Japanese giants Sumitomo Mitsui Financial Group, Daiwa Securities and Nomura.

US giants JPMorgan Chase and Bank of America have named Dublin as their new post-Brexit EU headquarters, while transferring some other posts to Paris.

Goldman Sachs, which employs 6,000 people in Britain, has refrained from offering specifics on its post-Brexit structure or staffing, saying only that it planned to shift hundreds of jobs to the continent but without saying where.

Frankfurt and Paris are expected to be “the main beneficiaries” of the shifting Goldman jobs, the person familiar with the matter told AFP.

But even with the changes, Goldman is expected to keep a large presence in Britain after Brexit.

Goldman CEO has high hopes for London HQ post-Brexit, despite uncertainty

Goldman Sachs chief executive Lloyd Blankfein expects to fill the firm’s new European headquarters which is currently under construction in London, but said Britain’s exit from the European Union left much outside the bank’s control.

Paris set for jobs windfall

Paris’ prospects seemed to rise on Tuesday (14 November) after Goldman Sachs chief executive Lloyd Blankfein effusively praised the French capital on Twitter.

The tweet recalled the Goldman chief’s praise of German financial hub Frankfurt on 19 October, which he touted for its “great” weather, among other attributes.

“Good because I’ll be spending a lot more time there. #Brexit” Blankfein said of the German city.

Blankfein also has taken to Twitter to rue the uncertainty in London, where Prime Minister Theresa May’s government faces a murky path to trying to effect the divorce from the EU on advantageous terms for the country.

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Blankfein on 30 October posted a photograph of Goldman’s partly built office in London.

“In London, GS still investing in our big new Euro headquarters here,” Blankfein said on Twitter. “Expecting/hoping to fill it up, but so much outside our control. #Brexit”

The President of the Ile-de-France region that includes Paris, Valerie Pecresse, has also promised to bring 2,500 jobs to the French capital after Brexit.

“#Brexit: 2,500 jobs already announced for Ile-de-France, with a target of 10,000 by 2019,” Pecresse tweeted on a visit to London to meet representatives of 70 internationally-focused companies based in London.

Pecresse’s figure concerns large financial companies, so the total could be closer to 3,500 and 4,000 posts once small businesses are taken into account, Arnaud de Bresson, chief executive of financial lobby group Paris Europlace and who was part of the visit, told AFP by telephone.

The Bank of England said this month that 10,000 UK financial services jobs could move abroad on the first day of Brexit, after warnings of up to 75,000 relocations in total.

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Bank of England Governor Mark Carney called today (7 April) for Britain and the EU to reach a sweeping deal to recognise each other’s bank rules after Brexit or risk a potentially damaging hit to financial services across Europe.