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Business

Goldman Sachs considers Frankfurt move

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Opening sequence

Business

Goldman Sachs considers Frankfurt move

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COMING UP:Goldman Sachs considers Frankfurt move

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Transcript

00:00:00
>> Goldman Sachs, a stalwart of the London banking scene, but for how much longer? The US investment bank is rumoured to be considering moving some assets to Frankfurt as a way around Brexit. Reuters Chief European Financial Correspondent, John O'Donald got the scoop.>> If Goldman Sachs moves to Frankfurt, it does not mean the city of London disappears.
00:00:18
It's going to remain an influential center. But nonetheless, it's moves like these which detract from its significance and over time see a gradual migration of money and jobs to the center of Europe and away from Britain.>> At the moment, London's bankers can access the single market under EU passports and rules, but there's a fear that'll go when Britain leaves.
00:00:42
Moving to Frankfurt would put Goldman's assets under the supervision of the ECB, allowing to carry on as normal. But it's easier said then done.>> Moving money often involves moving people and that's something which we would expect in this instance. It also requires jumping over regulatory hoops. Going under the watch of the ECB means the ECB will want to take a closer look.
00:01:03
That requires preparation and spending money to prepare for it.>> Talks have reportedly already been held at the ECB and if they go, others may, too.>> A lot of its competitors are facing the same problems. They want access to Europe as well like Goldman's, as I understand, many of them are considering a similar kind of move.
00:01:23
Some value London's access to the EU at 10 billion pounds a year. It's clearly worth a lot to the banks too.