The chief executive of JP Morgan has said the bank may cut its UK workforce by more than 25% if different financial rules are adopted following Brexit, according to BBC News.
Boss Jamie Dimon said drastic staff cuts were not needed immediately after the referendum but in the longer term there may be cuts if Brexit talks failed to ensure a smooth transition and an outcome which is similar to current arrangements. Dimon said failure to achieve this would harm London’s status as a global financial hub.
In the run-up to the referendum, Dimon said that around 4,000 jobs would be lost if the UK voted to leave the European Union. Critics said this was part of ‘Project Fear’. The job losses were subsequently revised down to around 500 – 1,000 posts.
Dimon said: “If we can’t find reciprocal recognition of rules – and there are a lot of people who are mad with the Brits for leaving and want their pound of flesh – then it could be bad. It could be more than 4,000.”
A government spokesperson said that the country’s competitiveness would be preserved following Brexit, and that a partnership with the EU “based on our rules and regulations being the same at the start and on our shared belief in free trade and a commitment to regulatory standards” would be established.
JP Morgan and fellow leading bank Goldman Sachs have indicated they will move substantial parts of their EU operations to Frankfurt if the resulting arrangements are not satisfactory.