The Brexit effect is starting to show itself. One of the most widespread fears since last June is that after the United Kingdom left the European Union, large companies would have left the City to emigrate to a country that guarantees direct access to the single market.
No sooner said than done. One of the first giants to leave London could be Goldman Sachs which is thought to be thinking of transferring subsidiaries and operations to Frankfurt, entering under the supervision of the ECB and continuing relations with EU customers without restrictions or limits.
The news was reported by Reuters, citing sources close to the dossier.
The risk of losing direct access to the European financial market would be pushing Goldman Sachs towards a transfer of some subsidiaries and operations from London to Frankfurt, in view of Great Britain's exit from the European Union. In this way, it could come under the supervision of the European Central Bank and its operations would end up under the scrutiny of the Single Supervisory Authority, but on the other hand it could continue the relationship started with customers in the Old Continent more easily." It's an option they are considering”, one of the sources told the agency, while another specified that negotiations have been started with the structures of the ECB itself in order to evaluate the option.
However, the US bank has specified that it will continue to "evaluate the possible implications" of the British vote on 23 June. “Many uncertainties remain about the impact of the Brexit negotiations on the organization of banking activity. In view of this, we have not taken any decision on what our reaction might be” to Brexit, “unlike what some press rumors claim”. No comment from Frankfurt.
