With United Kingdom ready to leave the EU which is termed as “Brexit”, the country has lot of face both politically and monetarily. While the EU has been demanding few billions of dollars as the fee for the Brexit, many corporates were also looking to move out their job from UK to other EU nation to increase employment in their respective countries. The big blow however has come from German banking giant Deutsche Bank which has been making plans to downsize its London operations.
The CEO John Cryan is reportedly thinking about moving out some $350 billion out of the U.K to Frankfurt which is 1/5th the size of its balance sheet and the value is little over Exxon-Mobil’s assets whch sood at $335 Billion(Market Capitalisation) as on Monday.
This step is been proposed since the banks no longer know for sure whether they will still be able to legally do business in any country within the union from the U.K. If everything goes as per the plan which is dubbed as Bowline, the movement of funds would commence from Spetember 2018 and will be complete by March 2019.
It is also to be noted here that the banking giant has already warned that it could move about 4,000 jobs out of the U.K. from among 12,000 employees which works out at 1/3rd being moved out to other EU nation. Though this is a bad news for the U.K. the decision seem to have worked well for the bank which saw its share value rise by 2.5% in trading Tuesday.
Would Britain still push with Brexit is what needs to be seen since it is almost in the brink of facing a massive economic downturn which may affect it a large scale.