Goldman Sachs announces post-Brexit hubs in Paris & Frankfurt

Goldman Sachs has announced to have two post-Brexit hubs, choosing to split operations between Frankfurt and Paris.

The two European cities will hold jobs and operations that can no longer be carried out in London following March 2019.

Chief executive Lloyd Blankfein said in an interview: “But we won’t have a single hub, but two – Frankfurt and Paris … In the end, it’s the people who will largely decide where they prefer to live,”

“We will have more employees on the continent. Some, if they want to, would come from London; we will hire others. And I can imagine that many Americans would prefer living in Paris than Frankfurt for various reasons.”

Goldman Sachs currently employs 6,000 people in London. A new European headquarters is currently under construction just off Fleet Street. It is unknown how many employees it will house.

The bank has also invested in a new Frankfurt tower block that could house up to 1,000 employees. This is a significant increase the current 200 people employed in the German city. It already has significant office space in Paris.

Blankfein has voiced his feelings about Brexit. The chief executive has called for a second referendum in the UK via Twitter whilst also using the platform to warn that jobs in London may be under threat.

Earlier this month, Blankfein tweeted his praise for both Paris and Frankfurt after visiting both cities.

“Struck by the positive energy here in Paris. Strong govt and biz leaders are committed to economic reform and are well thru the first steps. And the food’s good too!” he tweeted about Paris.

“Just left Frankfurt. Great meetings, great weather, really enjoyed it. Good, because I’ll be spending a lot more time there.” he said about Frankfurt.

Banks including Morgan Stanley (NYSE:MS), Nomura (TYO:8604) and Citigroup (NYSE:C) have also chosen to increase operations in Frankfurt post-Brexit. 

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