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The comments from the British-born co-head of Germany’s biggest bank are the most potent warning yet from a financier about the likely damage a “Brexit” vote could do to the fortunes of the City of London.
“It would be odd to trade European government bonds and foreign exchange in the non-EU branch of a German bank in London,” John Cryan told the Financial Times. “But keep in mind, you have to be present where the investors are.”
Asked where Deutsche would move trading activities if they were no longer viable in the UK, where it employs 12,200 people, he said: “For us, if it’s anywhere, it’s Frankfurt.”
As one of the most powerful banks in the City of London and the EU, Deutsche’s comments highlight the financial sector’s fears about the disruption Brexit could cause. [...]
While most senior bankers favour the UK staying in the EU, they have been reluctant to speak out. Their reticence is likely to intensify, since lawyers are advising companies that they may have to register under campaign finance laws if they speak out publicly after the referendum campaign starts officially on Friday.
Lloyds Banking Group issued a statement on Thursday warning of “economic uncertainty and potential volatility in the short term” if there was a Brexit vote, while adding that “the longer-term economic impact is unclear”.
The comments come after Lord Norman Blackwell, Lloyds’ chairman, said in a personal capacity last year that there was no “compelling economic argument” to stay in the EU, fuelling talk of a boardroom split at the UK’s biggest high street lender.
Full article on Financial Times (subscription required)