Bank of America picks Dublin for European Union base following Brexit

Lucy Hill
July 22, 2017

U.S. investment bank Morgan Stanley is the latest multinational financial firm to choose Frankfurt as a new post-Brexit European hub, according to several reports.

"Dublin is the home of more of our employees than any other European city outside of".

Details of banks' Brexit arrangements are starting to emerge following a July 14 deadline for them to submit details of their contingency plans to the Bank of England.

US bank Citigroup said on Thursday that it may need to create 150 new jobs in the European Union to deal with the impact of Britain leaving the bloc, as it confirmed it would headquarter its EU trading operations in Frankfurt.

The bank could add roughly 150 new staff in the bloc depending on political developments, it confirmed today in a memo that was sent to staff by Jim Cowles, Citi's chief executive for Europe, the Middle East and Africa. "While we await further clarity around the Brexit negotiations, we are making all necessary preparations to serve our clients however those discussions conclude", said Moynihan.

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Sterling also took a knock as a the European Union and United Kingdom clashed over the Brexit bill during the latest negotiations. The sharp dollar decline triggered a renewed round of support for gold with 3-week highs around $1,245.

This is in addition to the likes of Citibank, Barclays and Morgan Stanley, who have all announced this week that they plan to expand upon their Irish operations post-Brexit.

The bank said it was exploring options based on the assumption of a hard Brexit, in which the United Kingdom loses access to the single market for financial services.

In an interview with the Irish Times, group chief executive Brian Moynihan outlined that the current most important European Union banking unit, based in London, is to merge with the existing Irish subsidiary.

"This announcement follows a number of recent announcements by leading global financial institutions and is a strong endorsement of Ireland's attractiveness as a location for investment, and of the Government's approach to securing Brexit-related activities".

Other reports by TheDailyFarc

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