Barclays may route Frankfurt trades through Dublin after Brexit
Chief executive says no reason why London won’t remain ‘beneficial’ location
Jes Staley, chief executive of Barclays Plc, during a Bloomberg Television interview at the World Economic Forum (WEF) in Davos Photograph: Bloomberg
“A two-year cliff is not helpful for anybody,” Mr Staley said.
“You can’t function with financial contracts that go beyond two years if there is that cliff,” he said, so “talking about transitions and phase-ins will be important.”
Bankers have started to reveal more about how they will shift jobs to preserve their ability to service the EU market if UK prime minister Theresa May’s Brexit plan makes London operations unworkable.
Mr Staley said it would be “very difficult” to move a financial centre such as London to another location. If needed, London-based Barclays may reassign its Frankfurt branch to its Irish business, which is a fully-fledged subsidiary with its own capital
“Same people, same traders, you have to book a trade in Ireland as opposed to London, but that’s not a wholesale move of our capability from London to Ireland,” he said.
Ultimately, he said, the UK and the EU have an interest in agreements that benefit both sides.
Governments won’t “preclude a company from managing its liquidity in the most beneficial place,” he said. “Right now that’s most likely London, and I don’t see why that’s necessarily going to change.”