|
|
The European Central Bank may be grappling with two types of inflation: that of prices — and also, allegedly, of job titles. In December, a former Morgan Stanley banker claimed that he was instructed by seniors to take a “head of loan trading” designation, in name only, to trick the regulator into believing the bank had moved top staff to the EU to comply with post-Brexit rules.
Analysts suspect there are other such cases among global investment banks. Prior to Britain’s departure from the EU, international banks used London as a base for their pan-European operations. Now they have had to open or build up operations in the bloc due to the end of so-called passporting rights. Additionally, the ECB wants balance sheet risk taken inside the EU to be managed by senior staff there, not by directors back in the UK. It has conducted a desk-mapping exercise to improve compliance. ...
more at FT