Deutsche Bank is ready to move its parts of trading and investment-banking assets from London to Frankfurt because of Brexit
Germany’s plan is to move most of the business located in London to a so-named booking center in Frankfurt. The jobs of hundreds of traders, as well as over 20,000 client accounts will most likely be shifted as well. The strategy is still being finalized and will be reviewed if the Brexit scenario encounters changes, and will most probably be implemented over the next 18 months.
Just a year after Britain’s decision to exit the European Union, the biggest banks in the world are seeking potential alternative locations for some of their London branches.
“It’s another milestone in what we call the Brexodus,” said Gildas Surry, who helps oversee about 1 billion euros ($1.1 billion) at Axiom Alternative Investments in London, including Deutsche Bank bonds and shares. “Every single continental European bank is working on plans to repatriate their trading and plumbing in their home cities.”
Deutsche Bank revealed in March a new strategy that involves putting a lot of focus on the corporate clients, while also highlighting the firm’s German roots, including naming two German deputies to Cryan.
The division was recently formed by the merge of Global Markets and Corporate & Investment Bank units, and had 16,628 front-office staff at the end of the first quarter.
If the UK loses its passporting rights granted to EU members, Deutsche Bank would most probably need to turn its London branch into a subsidiary that would require capital. At the same time, moving to Frankfurt would be gradual and will require investments in infrastructure, technology, and also office space.
