Morgan Stanley, the investment bank, has already begun the process of moving about 2,000 of its London-based investment banking staff to Dublin or Frankfurt following Brexit, the BBC is reporting.
Morgan Stanley is an American multinational financial services corporation operating in 42 countries.
It has more than 1300 offices and 60,000 employees.
The move, along with those of other big corporations, will see the UK lose billions in tax revenues in the years ahead.
Advertisement
The Morgan Stanley jobs which would be moved from the UK would be in euro clearing but also other investment banking functions and senior management, BBC further reports.
“The American investment bank needs to avail of the passporting system which allows banks to offer financial services in all countries in the EU without having to establish a permanent base in that member state,” it said.
The president of Morgan Stanley, Colm Kelleher, told Bloomberg two days ago that Brexit would be “the most consequential thing that we’ve ever seen since the war”.
Advertisement
In other news:
- within the first half hour of trading Barclays shares fell by 30%, before recovering some ground.
- A short while ago they were down just over 20%
- RBS was down 17% and Lloyds down 24%.
- LThe FTSE 100 is down 4.43% at 6,057.19. That compares with its dive of about 8% at the start of trading as news of the vote to leave the EU was sinking in.
- However, the FTSE 250 – perhaps a better representation of British companies which are more likely to be affected by the Brexit vote – is at 15,856.06 – that’s a fall of 8.52%.
- Thomas Cook has suspended its online currency sales after unprecendented demand overnight.
- Throughout the night the travel company had been offering euros to click and collect at Thursday’s favourable rate of €1.27 to the pound, despite the plunge in the value of the pound in the wholesale foreign exchange market.
Add a comment
