Financial Blog

Banking giants consider moving thousands of jobs out of Britain after Brexit vote

Several of the worlds biggest banks are already considering sending thousands of jobs out of Britain after todays Brexit win.

JP Morgan, the globes biggest investment bank, and BNP Paribas, Frances financial giant, are reportedly looking at whether they should now move their London bases to Paris.

But American giant Morgan Stanley has denied rumours that it is planning to move 2,000 investment banking jobs to Frankfurt and Dublin.

It came as British Airways owner IAG issued a profit warning following the UKs decision to leave the EU.

The companys share price tanked 19 per cent to 425.6p in trading on Friday morning.

City workers are braced for months of pain as banks and financial institutions begin the process of considering whether to slash jobs or relocate to Europe in the wake of Brexit. 

HSBC and Goldman Sachs all said prior to the vote that thousands of jobs in the City of London could be moved to the continent in the event of Brexit.

Sarah Phillips, partner at solicitors Irwin Mitchell, said the Brexit vote will have a big impact on people working in Britains financial services sector.

She added: Many banks, insurers and fund managers who have large businesses in continental Europe could consider relocating to Paris or Frankfurt and senior staff will either lose their roles or have to move to another country.

Some global investment banks, such as JPMorgan, have said that Brexit would lead to a significant loss of jobs in the UK.

JPMorgan (JPM) Stock Tumbles on Banking Sector Weakness After 'Brexit'

Banking stocks in particular might need to eliminate and relocate thousands of jobs to meet new regulations following the referendum,CNBC.comreports.

Women in Banking: CFPB's Diversity Struggle; Tech's Role in Hiring

Dissatisfaction and Discomfort: The Government Accountability Office has urged the Consumer Financial Protection Bureau to improve its workplace culture after a survey found widespread dissatisfaction by female and minority employees. Roughly a quarter of female employees reported experiencing discrimination, compared with less than 11% for men, according to a survey. Additionally at least 24% of Asians, about 27% of African Americans and more than 15% of Hispanics said they had experienced discrimination. Also 27% of respondents, regardless of race and gender, indicated they dont feel comfortable raising concerns.

Wooing Women: It isnt just the robo-advisers that are trying to woo women as clients. Terry Jenkins took over as the chief executive at Key Private Bank last year, and his first initiative was centered around making it more appealing to women. He conducted a customer study that showed husbands and wives usually treated as separate clients often approach financial decisions collaboratively. Still, women tend to believe in the education around how to implement a plan, Jenkins says. That requires more time spent on the relationship side and understanding what is going on. So Jenkins is training advisers at the Cleveland company to focus more on advice than on products and to be more sensitive--for example, by picking up on body-language cues and asking the right follow-up questions. Currently, 42% of the companys advisers are female, and Jenkins wants to increase that number to better reflect the diversity of its clients. Since a system launched in the fourth quarter of 2015 to convert Key Banks commercial and retail customers to private banking clients, 47% of its new clients are women. (Beth Mooney, American Bankers Most Powerful Woman in Banking, is the chairman and CEO of KeyCorp.)

Part Human, Part Robot: Wall Street firms are using data analytics to lower the expense of high turnover and find candidates who are a good fit but are getting overlooked by hiring managers. But whether these algorithms will fix the industrys diversity imbalance or reinforce it remains to be seen, especially since fallible humans will be deciding what goes into those algorithms. Currently, theres a tendency at investment banks to focus on a slim selection of schools and established networks when seeking candidates for lucrative jobs a pipeline that lacks women, racial minorities, and individuals not raised by wealthy families. The investment banks then fulfill diversity quotas by hiring minority and female candidates for less lucrative jobs.

Creating Confidence: In any career, confidence is just as important as competence, yet many highly qualified women are reluctant to step up for new roles, says Racquel Oden, a managing director in Merrill Lynchs New York office. She recommends four practices that help her foster greater confidence: embracing risk, playing to strengths, taking advantage of change and owning and learning from mistakes. The confidence gap between men and women often surfaces in discussions of gender equality in the workplace, especially since a certain hotly-debated feature on the issue emerged two years ago.

Blockchain for Supply Chains: Blythe Masters often describes blockchain technology as revolutionary for financial services firms, but this week she talked up how it has potential applications in other industries as well. In terms of the audience in this room, probably something that many, if not all, of you have in common is the challenge of supply-chain management or dispute resolution in various business contexts, said the former JPMorgan Chase executive who is now CEO of the blockchain software company Digital Asset Holdings, speaking in front of an audience of chief financial officers. Those are the types of contexts in which blockchain technology has the greatest potential upside. The technology can help save costs and reduce errors, she said.

Role Call

JPMorgan Chase has named Lori Beer chief information officer of its corporate and investment bank. She had served as CIO for banking since joining the company in 2014. Before that, she spent 15 years at the health insurance giant Wellpoint.

Huntington Bancshares in Columbus, Ohio, has announced that Sandy Pierce will run its private-client group. Pierce, one of our Most Powerful Women in Banking, was previously vice chairman of Akron, Ohio-based FirstMerit, which is being bought by Huntington for roughly $3.4 billion. Pierce was also chairman and CEO of FirstMerit Michigan.

Beyond Banking

Sorry Not Sorry: Ayesha Curry was roasted last weekend for tweeting that Game 6 of the NBA finals was rigged after her husband, Gold State Warriors hero Steph Curry, fouled out with four minutes left to play. She later deleted the post and explained it was tweeted in the heat of the moment. Sports commentator Stephen A. Smith said her zest to speak out was out of line and called her adorable. He also compared her to Savannah James, wife of Cleveland Cavaliers Lebron James, who he said is something special ... Shes wonderful inside and out. She sits there, she doesnt bring any attention to herself. She never tweets and goes out there and calls out the league. Smiths critique ended up drawing its own share of criticism.

Struggle with the Juggle: Most companies probably now recognize the importance of attracting top female talent. But retaining this talent is still a struggle. Companies too often fail to address the challenges of work-life balance that women face. Regardless of whether it is right or wrong or fair or not, she is likely to take on the lions share of responsibilities at home, reads an article in CEO Magazine. But, she wont actually share any of this with you. She will absolutely not let her guard down because she doesnt want to be judged as not coping, as not managing, as not being deserving of her status as talent. The first you will hear about her struggle with the juggle is when she hands in her resignation.

Banking on the Internet of Things: More than Restocking Fridges

Theres a lot of risk when you expose banking information to all these form factors, says one banker. You have to ask: are they secure and are you creating avenues for someone malicious to come in? IMAGE: iStock

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