JP Morgan Chase & Co. (NYSE:JPM) is reportedly evaluating European cities for moving its banking activities from London after Brexit.
A group of 75 JP Morgan staff have spent the past nine months assessing European cities on such factors as employment law and the frequency of flight delays at local airports, The Wall Street Journal reported.
The news came as Prime Minister Theresa May triggered Article 50 today, kicking off the formal process for Brexit negotiations. The UK must leave the European Union by 29 March 2019.
JP Morgan is Europe’s largest investment bank. It employs 16,000 people in the UK and has concentrated much of its European corporate and investment banking activities in London.
But JP Morgan is looking to relocate its London operations after the UK exits the EU on worries about the impact of losing access to Europe’s single market.
At the moment, JP Morgan can sell products to European clients from London and set up a network of branches across the continent but this is unlikely to be the case after Brexit.
JP Morgan chief executive Jamie Dimon has said up to a quarter of the bank’s staff in the UK may have to relocate.
JP Morgan has three European sUBSidiaries with banking licenses including a bank in Dublin, one in Luxembourg and an investment bank in Frankfurt.
The bank also has branches in several major European cities including Milan, Brussels and Amsterdam.
In 2015 a third of its $33.5bn of its investment-banking revenue came from Europe, the Middle East and Africa.