Frankfurt’s attempt to become the EU’s pre-eminent post-Brexit financial centre received another boost on Thursday as more details emerged of plans by Deutsche Bank and Citigroup to beef up their operations in the German financial capital.
In a video published on Thursday, Deutsche Bank chief executive John Cryan has told staff that Germany’s biggest bank will begin to book the “vast majority” of the assets in its UK global markets business to Frankfurt.
Jim Cowles, Citigroup’s Europe, Middle East and Africa chief, told his staff the bank had decided to base its EU broker dealer, its main trading operation, in Frankfurt, but would scatter some other businesses across Amsterdam, Paris, Dublin, Luxembourg and Madrid.
The news underlines how Germany’s financial centre is stealing a march on rivals, such as Dublin, Paris and Luxembourg, in the contest to win banking jobs and tax revenues from London ahead of Britain’s departure from the EU in March 2019.
Helped by the presence of the eurozone banking regulator at the European Central Bank, Frankfurt has a particular edge in attracting the financial market trading operations that global investment banks are looking to shift from the UK to avoid being cut off from their EU clients.
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