JPMorgan chief says
Brexit could mean 'fewer' UK jobs with the bank
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[June 03, 2016]
By Anjuli Davies
LONDON (Reuters) - The head of U.S.
bank JPMorgan Chase told British staff on Friday a decision by
Britain to leave the European Union could mean "fewer" jobs with the
bank there and more jobs in Europe.
"A vote to leave would be a terrible deal for the British economy,"
Chief Executive Jamie Dimon said, speaking alongside finance
minister George Osborne in Bournemouth, where the bank employs 4,000
out of 16,000 staff based in Britain.
"So if the UK leaves the EU, we may have no choice but to reorganize
our business model here. Brexit could mean fewer JPMorgan jobs in
the UK and more jobs in Europe."
Campaigners seeking to win a vote for Britain to remain in the EU in
this month's referendum have said London's financial sector could
lose out if the world's fifth-biggest economy leaves the EU, with
concerns that Britain's role as a global financial hub and major
trading center for the euro could be under threat if it gives up its
membership.
Bank of England Governor Mark Carney has said some big financial
firms might move their business out of Britain if the country did
not secure the same kind of access it currently has to the EU.
"One realistic outcome is that we lose the ability to passport our
banking and trading services into Europe," said Dimon.
"But our clients will still need us to trade within what will then
be the EU. If that’s what the rules say, we will need to do what
works."
The five largest U.S. banks employ 40,000 people in London, more
than in the rest of Europe combined, taking advantage of the EU "passporting"
regime that allows them to offer services across the bloc out of
their British hubs.
A vote to leave would be particularly difficult for U.S. investment
banks since most run the bulk of their European trading operations
out of London offices, and some could even give up parts of their
business in the bloc altogether, Reuters reported in May. [ID:
nL5N18942O]
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JP Morgan CEO Jamie Dimon speaks at a Remain in the EU campaign
event attended by Britain's Chancellor of the Exchequer George
Osborne (not shown) at JP Morgan's corporate centre in Bournemouth,
southern Britain, June 3, 2016. REUTERS/Dylan Martinez
JPMorgan alongside Wall Street rivals Morgan Stanley, Citi and Goldman Sachs
have donated six-figure sums to the campaign for the country to stay in the EU.
Dimon said in April that years of economic uncertainty would be the "best case"
outcome from a decision by Britain to leave the European Union, in his annual
letter to shareholders.
JPMorgan is the largest private sector employer in the south coast town of
Bournemouth, where it operates a hub for technology, operations and client
services and supporting processing activities.
(Editing by Greg Mahlich)
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