Migration will make the U.S. firm a top 10 bank in the country; Head of the Frankfurt unit has taken on more responsibilities
JPMorgan Chase & Co.
is moving about 200 billion euros ($230 billion) from the U.K. to
Frankfurt as a result of Britain’s exit from the European Union, a shift
that will make it one of the largest banks in Germany.
The
U.S. bank plans to finish the migration of the assets to its
Frankfurt-based subsidiary by the end of the year, people familiar with
the matter said. The change could boost its balance sheet enough to
become the country’s sixth-largest bank, based on the assets of the
biggest commercial lenders last year.
Among the Biggest Banks
JPMorgan's Germany-based unit will soon be among the Top 10 lenders
The assets to be shifted represent slightly less than 10% of
JPMorgan’s total balance sheet. It also represents almost half of the
total assets held by German branches of foreign banks at the end of
June, according to Bundesbank statistics.
With less than four months to go until the Brexit transition
period expires, international banks have been beefing up operations in
the European Union to make sure they can service clients given the
prospect that U.K.-based firms, including JPMorgan’s London operations,
won’t retain passporting rights in a trade deal.
Given that increasingly likely prospect, the bank last week told about 200 London staff to move to continental European cities including Paris, Frankfurt, Milan and Madrid, Bloomberg News has reported.
However, it’s not just Brexit. JPMorgan has repeatedly said
that its German unit will seek market share in investment banking,
corporate banking and wealth management. As JPMorgan steadily
strengthens its operations in Germany, the head of the Frankfurt-based
unit, Dorothee Blessing, has been taking on additional responsibilities..... more at Bloomberg
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