Germany Targets ‘Thousands’ of Brexit Bankers for Frankfurt
Germany will lure thousands of finance jobs to Frankfurt from London after Britain exits the European Union -- if the country’s Finance Ministry gets its way.
“If insurers, if asset managers, if the entire financing ecosystem moves to Germany, then the banks won’t just think about moving several hundred jobs to Frankfurt, to Germany, but several thousands,” Deputy Finance Minister Joerg Kukies said at the Euro Finance Week conference on Monday. “That is our big ambition.”
Chancellor Angela Merkel’s ruling coalition is trying to make the move smoother and more attractive for banks, Kukies said. Among other things, the government is pushing ahead with plans to make it easier for banks in Germany to fire staff, such as senior traders, who contribute materially to their firm’s risk.
Many banks are stepping up their preparations for the end of cross-border banking licenses with London when the U.K. leaves the EU in a little over four months. Several are planning to shift hundreds of billions of euros worth of balance-sheet assets as a result.
Kukies also said:
- Germany working on legislation, including to allow German covered-bond banks to continue to operate in the U.K. after Brexit
- Government also working on giving security to market players regarding continuity of contracts post-Brexit
- On swaps clearing, Finance Ministry views EU Commission agreement with U.S. Commodity Futures Trading Commission as good basis for working together and wants to continue with “good cooperation”
©2018 Bloomberg L.P.