JPMorgan Chase & Co. (JPM) is scouring Europe for the best place to call its home after Britain leaves the European Union.
For the past nine months, the New York-based bank’s executives have been evaluating at least eight cities including Paris, Frankfurt and Dublin, according to The Wall Street Journal. JPMorgan is looking at factors like frequency of flight delays and employment laws, and has even shopped for real estate in Dublin and Frankfurt. Staffers are already working on the paperwork to file for appropriate banking licenses, although a final decision has not been made. (See also: Brexit Deal Needed, or Bankers Leave Jamie Dimon.)
British Prime Minister Theresa May officially said today that the United Kingdom will leave the European Union, triggering the process for the historic “Brexit.” (See also: Countdown to Brexit: What is Article 50?)
JPMorgan Chase, which employs about 16,000 people in the U.K., is Europe’s largest investment bank and a crucial financial institution serving foreign investors who are trying to determine their post-Brexit strategy. It has long concentrated most of its investment banking practices in London. Now, about 25 percent of the bank's staff there will have to move, CEO Jamie Dimon said recently.
Analysts expect the British banking sector to lose 83,000 jobs in the next seven years as a result of Brexit. Among them, Citigroup Inc. (C) has said it will move 900 jobs, or about 10 percent of its UK-based workforce, to Dublin. (See also: Where Will London’s Banking Jobs Go After Brexit?)
JPMorgan stock is up 50 percent the past year and up 2.6 percent year to date. (See also: New York May Be Brexit’s Big Winner.)