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Source Says JP Morgan Will Be Moving $230 Billion To Germany

JP Morgan Moving
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EDITOR NOTE: London is no longer the gateway to transacting with the EU. Banks are preparing for life after Brexit--with JPM moving out $230 billion, and Barclays already having moved out an equivalent amount; the total dollar amount leaving the UK, all banks considered, estimated to be around $1 trillion. 

JP Morgan is moving money out of the UK.

A lot of money.

About 200 billion euros in all, or around 230 billion dollars.

That’s according to a Reuters source.

Its move comes after the bank said back in January that it would expand operations in Paris to prepare for life after Brexit.

The source didn’t say what type of assets are being moved.

But analysts say it would typically include cash, stocks and bonds held in inventory for clients to trade.

On this occasion the destination is said to be Germany.

Now JP Morgan is just the latest to suck cash out of the City of London.

Earlier this year Barclays moved its European headquarters to Dublin.

It too moved about 230 billion dollars as part of that.

Banks are acting on the assumption they will no longer be able to bow all their European trading out of London.

Clients will trade with the lenders’ local entities rather than their London units.

Banks using Britain as a gateway to the EU will have to fully execute such plans before the Brexit transition period ends in December.

Last year, consultancy EY estimated that assets worth almost 1 trillion dollars were set to move.

Video Transcript

- JP Morgan is moving money out of the UK, a lot of money-- about 200 billion euros in all, or around $230 billion. That is according to a Reuters source. Its move comes after the bank said back in January that it would expand operations in Paris to prepare for life after Brexit.

The source didn't say what type of assets are being moved. But analysts say it would typically include cash stocks and bonds held in inventory for clients to trade. On this occasion, the destination is said to be Germany.

Now, JP Morgan is just the latest to suck cash out of the city of London. Earlier this year, Barclays moved its European headquarters to Dublin. It too moved about $230 billion as part of that.

Banks are acting on the assumption they will no longer be able to book all their European trading out of London. Clients will trade with the lender's local entities rather than their London units. Banks using Britain as a gateway to the EU will have to fully execute such plans before the Brexit transition period ends in December. Last year, consultancy EY estimated that assets worth almost $1 trillion were set to move.

Read more on Yahoo! News

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