Citigroup chooses Frankfurt as its new European trading hub

Paterniano Del Favero
Luglio 18, 2017

USA bank Citi is expected to confirm this week it is the latest financial giant to up sticks and move a major part of its operation out of a post-Brexit Britain. It's yet to be decided if the jobs will be filled by moving existing employees or by hiring locally, and it's likely to be some combination, the person said.

Citigroup already has around 350 employees working in Frankfurt, and it is expected that the group will use the location to deal with some of the trading activities now done in London.

Financial services firms need a regulated subsidiary in an EU country to offer products across the bloc, which could prompt some to move jobs out of Britain if it loses access to the European single market.

British Prime Minister Theresa May has ruled out such a close bilateral relationship with the European Union, leading senior business representatives to complain that the country was heading towards a harmful "Hard Brexit" which prioritizes lowering migration over the needs of the economy.

Major global lenders including Goldman Sachs, Deutsche Bank and UBS, as well as the Japanese banks Nomura, Daiwa and Sumitomo Mitsubishi Financial Group have announced plans to open new offices in Frankfurt.

The bank is also in talks with the European Central Bank and regulators in other EU nations including Ireland about relocating other sections of its business.

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