Frankfurt is narrowly surging ahead of rival cities in the fight for the City of London’s financial services business, according to panellists at an event in London yesterday.
But while the German city is for now enjoying a small victory, the most remarkable conclusion so far is the level of fragmentation Brexit is already creating in the European banking market.
While Barclays, Standard Chartered and Bank of America have all implied they will be moving to Dublin, Goldman Sachs, Citigroup and the European Banking Authority are headed to Frankfurt and HSBC to Paris.
“Every bank is sensibly saying it will have a subsidiary in the UK. It’s pragmatic if you have a branch there already, and a legal conversion to a subsidiary gives you an insurance policy,” said Lord Blackwell,...