Bonjour. Guten Tag. US banks bulk up in EU | IFR – International Financing Review

US EU banks guten
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Bonjour. Guten Tag. US banks bulk up in EU | IFR – International Financing Review

JP Morgan last week opened a shiny new trading floor in central Paris and expects to have 800 staff in the French capital by the end of next year, three times its level before Brexit, as US banks step up relocation and hiring of staff in the EU.

Brexit has driven the increase, although bankers said it had also been fuelled by a “localisation” push in recent years, where banks want dealmakers to be closer to clients. That has seen more bankers put in offices such as Milan, Madrid and Stockholm – echoing a trend seen in the US and showing it is not just a Brexit factor. Still, it only partially reverses a 20-year trend where bankers have flocked to London from around the EU.

The smaller EU-27 now needs to capitalise on the opportunity and step up progress on capital markets union, bankers and politicians say. There has been a surge in debt and equity capital markets activity in the past year, spurred by the Covid-19 pandemic, and to sustain that in the EU the bloc needs impetus from capital markets union as companies remain overly reliant on bank loans.

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