Brexit could mean 'fewer' UK jobs with the bank, says JPMorgan chief

London

THE head of US bank JPMorgan Chase told British staff on Friday a decision by Britain to leave the European Union (EU) could mean "fewer" jobs with the bank there and more jobs in Europe.

"A vote to leave would be a terrible deal for the British economy," chief executive Jamie Dimon said, speaking alongside Finance Minister George Osborne in Bournemouth, where the bank employs 4,000 out of 16,000 staff based in Britain. "So if the UK leaves the EU, we may have no choice but to reorganise our business model here. Brexit could mean fewer JPMorgan jobs in the UK and more jobs in Europe."

Campaigners seeking to win a vote for Britain to remain in the EU in this month's referendum have said that London's financial sector could lose out if the world's fifth-biggest economy leaves the EU, with concerns that Britain's role as a global financial hub and major trading centre for the euro could be under threat if it gives up its membership.

Bank of England governor Mark Carney has said that some big financial firms might move their business out of Britain if the country did not secure the same kind of access it currently has to the EU.

"One realistic outcome is that we lose the ability to passport our banking and trading services into Europe," said Mr Dimon. "But our clients will still need us to trade within what will then be the EU. If that's what the rules say, we will need to do what works."

Adding weight to Mr Dimon's warning, the International Underwriting Association of London (IUA), Lloyd's of London, and Fidelis Insurance said in a joint paper that EU insurance business written from London would shift to the continent if Britain votes to leave the bloc. British insurers would almost certainly have to lodge large sums of money in EU states, report to local regulators and comply with regulations that are as tough as those in the bloc, it added. Negotiating trading terms with the EU would take years if Britain were to leave, the paper warned.

Around 16 per cent of London's insurance business comes from EU countries other than Britain, or £9.6 billion (S$13.8 billion). Reuters

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