FRANKFURT: Major US investment banks are planning to shift about € 250 billion (US $ 283 billion) to Frankfurt, due to Brexit.
In a statement, Goldman Sachs Group Inc., JPMorgan Chase & amp; They wanted to avoid defining private information.
The following Brexit forecasts are based on the annual reports of the German subsidiaries of the bank, according to 2017 figures and people who know the subject; all figures are billions of euros.
Brexit post plan 2017 real JPMorgan> 100 15.7 Goldman Sachs 40-60 0.3 Citigroup 40-50 10.2 Morgan Stanley 30-40 1.6 Total ~ 250 27.8
The ultimate size of assets, including large amounts of public derivatives, may vary depending on the outcome of the Brexit negotiations. If the banks can maintain their EU passport rights, any shift will likely be very likely.
Representatives for JPMorgan, Goldman, Citi and Morgan Stanley refused to comment.
Many banks conclude Brexit's plan just a few months before Britain's planned divorce from the EU and the uncertainty about the key aspects of the latest agreement. Recently, it is necessary to approve the plans from the regulators, who say they want to see more risk management functions in the EU after Brexit.
JPMorgan, Goldman Sachs and Morgan Stanley said they will turn their Frankfurt offices into EU centers. Citigroup chose Frankfurt as the EU trade center and recently transformed the German legal entity to serve the entire bloc. Bank of America Merrill Lynch chose Paris as the headquarters of the EU.
According to a regulatory filing, JPMorgan held US $ 310 billion worth of US $ 2.5 trillion at the end of 2017. Similar statements were not available for other banks. At the end of 2017, Deutsche Bank, with a total assets of 1.48 trillion euros, could reach at least 300 billion euros in Frankfurt.
According to the statistics of the Bundesbank, there were 143 foreign capital banks in Germany at the end of September, combining 1,14 trillion euros (US $ 1.3 trillion) in the balance sheet. Although US banks are among the banks that have planned the largest balance sheet changes as a result of Brexit, other banks that have chosen Frankfurt as one of the EU centers such as Standard Chartered, UBS or Nomura are likely to leave the balance sheet in Germany & # 39; is shifting to its financial capital. good.