- JPMorgan CEO Jamie Dimon warns that Brexit could force the bank to cut more than 4,000 UK jobs.
- Cuts would come if the UK and EU failed to agree on some sort of regulatory equivalence in the financial services sector post-Brexit.
- “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,” he said.
Jamie Dimon, the chief executive officer of JPMorgan has warned that the bank could cut more than 4,000 jobs from its UK operations after Brexit, if the UK and EU fail to agree on common banking rules.
Speaking in an interview with the BBC at the World Economic Forum in Davos, Dimon said that a quarter of JPMorgan’s 16,000 UK staff could be cut from the bank.
JPMorgan’s UK staff are based in its Canary Wharf office, as well as in Bournemouth and Glasgow.
“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,” he said.
“We love London, we love working there. We’ve got, as you point out, huge efficiencies for us. Huge efficiencies for the eurozone too. But if they determine that you can’t have reciprocal trade practices and reciprocal regulations it would be a lot,” Dimon told the BBC.
Fears abound in the City of London about the future relationship between the financial centre and the rest of Europe, once Britain leaves the EU. Most have now given up on Britain retaining passporting rights – a set of rules and regulations which allow UK-based finance firms to trade with and sell their services into Europe – but remain hopeful of some sort of regulatory equivalence between the UK and the continent.
Equivalence would effectively mean the UK transferring existing EU financial regulations onto its own statute book allowing banks and financial services companies to continue operations on both sides of the channel without breaking any rules.
The trouble comes, Dimon says, if the UK and EU can’t agree on such an arrangement.
“When asked if that outcome would represent a real threat to the future success of London as a financial centre,” the BBC’s Simon Jack writes: “He gave a single word answer: ‘Yep.'”
Dimon has previously been a vocal critic of Brexit, and even warned around four months after the referendum that the UK’s vote to leave the European Union had made the chance of a eurozone collapse five times more likely.
Brexit made the “chances of the eurozone not surviving in the next decade five times higher,” Dimon said.