After HSBC, Barclays looks to prepare the contingency plan for Brexit
A couple weeks ago, UK Prime Minister, Theresa May, confirmed that Britain will leave the single European market. Since then, banks have been vocal about their exodus from London, which is losing its positon as an access point to European markets.
Banks look to restructure and Barclays PLC (ADR) (NYSE:BCS) announced to choose Dublin as its headquarter in Europe, according to Wall Street Journal. Barclays has started to look for offices spaces in the Dublin and have been in contact with the Irish regulators, according to the source.
The UK Prime Minister may be able to strike a deal with European Union regarding the passporting rights but Barclays is well ahead to prepare the contingency plan. Passporting rights allow the corporations to have access to the European markets from a single headquarter, that is London.
Several US corporations including banks have London as their headquarter for European market, and Brexit may just take that away from Britain’s biggest city. The transfer of jobs from London may include senior mangers, currency traders, human resource staff and derivatives specialists. However, the transfer and new hires are decisions yet to be made.
Barclays and other banks will have a clearer picture as the negotiation process moves forward after article 50 is exercised. Chief executive of Barclays, Jes Staley, has been more critical over Brexit and expressed that the transition of the financial centre will be difficult. Moreover, chief executive of JPMorgan said that the transfer of jobs will be more than anticipated before. HSBC Holdings Inc said that at least 1,000 jobs will be relocated from London.
Something like Brexit has never happened before as corporations can not conclude not ramifications of Brexit yet. The two-year process would include several technicalities which could retain some older policies. Banks are still hopeful of not losing the passporting rights completely. Barclays currenct employees are around 100 people in Dublin.