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Jp Morgan Uk Future At Risk

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http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/7896696/JP-Morgan-UK-future-at-risk.html

JP Morgan has raised serious concerns about its commitment to its new £1.5bn European headquarters at Canary Wharf because of anger within the bank at the lack of support for the financial sector in the UK.

Jamie Dimon, chief executive of the American bank, is understood to have doubts about investing so heavily in London when there is uncertainty about future costs that could be imposed on banks. Some sources said the bank was

"on the verge" of quitting the development.

Any move by JP Morgan to scrap the twin skyscraper project in the Docklands would be a major blow for the UK and George Osborne's claims that Britain is "open for business".

High-level talks are understood to have taken place between JP Morgan, officials from the Mayor of London's office and Canary Wharf Group (CWG) over the future of the headquarters, although no decision has been reached.

Boris Johnson, the London Mayor, has met representatives of JP Morgan and has been told of their concerns about the future of London as a financial centre.

The bank has made it clear that it now sees expansion being in Asia rather than in London.

It has also been made clear to Mr Johnson that as the decision on building a new headquarters in Canary Wharf is one "for the next 20 years" it is now at serious risk, said one person with knowledge of the discussions.. "They are finding that decision very difficult in the present climate because of concerns about what is ahead."

JP Morgan has listed a number of factors in their decision to review building a new headquarters in London. The atmosphere of "banker bashing" from politicians that is still apparent even after the election, new plans for an "activity tax" on banking operations in the UK, the new levy on balance sheets, the ending of tax relief on pensions for higher rate earners and the 50pc higher rate income tax have all been raised.

Mr Dimon is understood to have warned Alistair Darling, the previous chancellor, in a phone call last year that the bank could scrap the plans for its headquarters. His mood does not appear to have been improved by a change in government, and last Thursday JP Morgan revealed it had paid £328m to the Treasury for the one-off UK bonus tax.

When the bank paid CWG £237m in November 2008 for the headquarters' site, it was perceived as a major vote of confidence in the UK, with space for 20,000 staff in the proposed new building.

More threats from our banker friends, perhaps the taxpayer should offer to build it for them and let them work from it rent free for 50 years?

Or is it JP are a bit worried about the global economy and don't want to commit to the folly of building a £1.5bn white elephant in Canary Wharf?

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Good bye, good riddance and don't forget to close the door on the way out. I doubt Asia wants them anyway. Boris Johnson is a banker's pet too.

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you could run a bank from a portacabin.

many other enterprises do.

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A few less parasitic banksters in the UK would not hurt the economy one bit.

The UK should raises taxes and capital requirements on certain Bankster activities.

The ones that add nothing to the economy, should be taxed to the Nines

But, but we won't get our shiny new towers in Canary Wharf, boo hoo! Oh and all that lovely banksta trickle down cash! :lol:

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http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/7896696/JP-Morgan-UK-future-at-risk.html

More threats from our banker friends, perhaps the taxpayer should offer to build it for them and let them work from it rent free for 50 years?

Or is it JP are a bit worried about the global economy and don't want to commit to the folly of building a £1.5bn white elephant in Canary Wharf?

It is not a threat. It is a simple recognition of fact. There were many reasons why London became the world's financial capital. Those reasons are disappearing rapidly. It is no longer in JP's interests to have such a large presence here. They will deploy their resources and capital elsewhere.

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That article paints it as a one way street, what about the reduction in corporation tax?

or did they just work their way around that tax anyway?

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you could run a bank from a portacabin.

many other enterprises do.

There are very few banks that add more to society than they take from it. The community run micro-lenders in third world countries do seem to meet that test. Portacabins are the height of luxury for them.

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A few less parasitic banksters in the UK would not hurt the economy one bit.

The UK should raises taxes and capital requirements on certain Bankster activities.

The ones that add nothing to the economy, should be taxed to the Nines

If only that were true, the financial sector has its boot to our throat. Even after the huge and repeated bailouts, we are as dependent on them as we were before.

The term bankster is just so appropriate except that most of what they do is legal even if its morally bankrupt.

The only advantage of the crash is that the average man in the street has realised the power of banking, so those lonely academics who have been shouting about this fo decades at least have an audience. The question is will we remember and will we actually hold our political 'masters' to account. In reality we need the american populus to do something as without their involvement anything we do will be counter productive.

Until we realise that the core functions of banking and finance are a utility we will continue to buy into this banking con which has been destroying lives over the last 250 years

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If only that were true, the financial sector has its boot to our throat. Even after the huge and repeated bailouts, we are as dependent on them as we were before.

The term bankster is just so appropriate except that most of what they do is legal even if its morally bankrupt.

The only advantage of the crash is that the average man in the street has realised the power of banking, so those lonely academics who have been shouting about this fo decades at least have an audience. The question is will we remember and will we actually hold our political 'masters' to account. In reality we need the american populus to do something as without their involvement anything we do will be counter productive.

Until we realise that the core functions of banking and finance are a utility we will continue to buy into this banking con which has been destroying lives over the last 250 years

Im sorry, but JPMorgan doesnt get its new building in London has what effect on our economy??

existing banks will get the business. We dont need a new JPMorgan building.

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A few less parasitic banksters in the UK would not hurt the economy one bit.

The UK should raises taxes and capital requirements on certain Bankster activities.

The ones that add nothing to the economy, should be taxed to the Nines

Nose. Knife. Face.

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Good bye, good riddance and don't forget to close the door on the way out. I doubt Asia wants them anyway. Boris Johnson is a banker's pet too.

Asia would kill to get them.

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Im sorry, but JPMorgan doesnt get its new building in London has what effect on our economy??

existing banks will get the business. We dont need a new JPMorgan building.

The difficult thing to understand is that they do have access and control over a huge amount of business, eg mergers and acqs; ipo's; risk ; etc etc So if they are not based here the business may not necessarily go to another bank in the UK. Whatever contract work they do can be done from any office in the world. London alongside new york is the favourite place for financial types to work and live, maybe even more favoured then new york. So head offices and building do make a difference.

JP morgan may do the work in another office anywhere in the world. That is why these institutions have so much power, they can take their business elsewhere. There are always substantial contracts which governments need doing, and its always the same banks that do it. Be it goldman or jp morgan or UBS they all want preferential treatment. And watch they will get it. But that is the catch 22 we are in we all need them, for their core work,sure their speculative work and bonuses has destroyed the western world economy but until world wide rules are made and enforced we can do nothing but sit back and watch as the bonuses restart.

The danger which Europe is still not facing up to is that it is us in europe most at risk from this crash no the US. it is financial centres in mid east and far east taking business now, add to that India becoming more competitive only adds to our potential woes. whereas european politicians want to delude themseves that european standards of living are not about to fall.

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But, but we won't get our shiny new towers in Canary Wharf, boo hoo! Oh and all that lovely banksta trickle down cash! :lol:

Typical HPC loony logic.

We spend hundreds of billions bailing out the banks, then can't wait to get rid of them before they've paid a penny of it back. The tax income stream from banks like JPM is precisely what was supposed to repay the banking sector's debt to taxpayers over the next 10-20 years. But what the heck, let's just chuck em out anyway. Yep, that should work.

Plonker.

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Typical HPC loony logic.

We spend hundreds of billions bailing out the banks, then can't wait to get rid of them before they've paid a penny of it back. The tax income stream from banks like JPM is precisely what was supposed to repay the banking sector's debt to taxpayers over the next 10-20 years. But what the heck, let's just chuck em out anyway. Yep, that should work.

Plonker.

:lol:

If you really believe they will pay anything back you are seriously deluded. And even if they were to, you need to ask how and at what risk to the economy.

Edited by SirStirlingSlumlord

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The difficult thing to understand is that they do have access and control over a huge amount of business, eg mergers and acqs; ipo's; risk ; etc etc So if they are not based here the business may not necessarily go to another bank in the UK. Whatever contract work they do can be done from any office in the world. London alongside new york is the favourite place for financial types to work and live, maybe even more favoured then new york. So head offices and building do make a difference.

JP morgan may do the work in another office anywhere in the world. That is why these institutions have so much power, they can take their business elsewhere. There are always substantial contracts which governments need doing, and its always the same banks that do it. Be it goldman or jp morgan or UBS they all want preferential treatment. And watch they will get it. But that is the catch 22 we are in we all need them, for their core work,sure their speculative work and bonuses has destroyed the western world economy but until world wide rules are made and enforced we can do nothing but sit back and watch as the bonuses restart.

The danger which Europe is still not facing up to is that it is us in europe most at risk from this crash no the US. it is financial centres in mid east and far east taking business now, add to that India becoming more competitive only adds to our potential woes. whereas european politicians want to delude themseves that european standards of living are not about to fall.

whoa Neddy.

JPMorgan NEEDS to be at the hot centre to GET all this business.

You are saying they are big and thats the way they always were...No, they grew...as smaller ones will..by offering better services in the hot centre of the Universe.

the only thing that is constant is change....trying to slow change just backfires..

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whoa Neddy.

JPMorgan NEEDS to be at the hot centre to GET all this business.

You are saying they are big and thats the way they always were...No, they grew...as smaller ones will..by offering better services in the hot centre of the Universe.

the only thing that is constant is change....trying to slow change just backfires..

haven't you noticed for all the fine words both Paris and frankfurt are bending over backwards ( and forwards) to get these banks to relocate. Sure they introduced anti hedge funds rules which are virtually all based in london. Did they touch any of the other major regulations, not even started discussing them. Sure tweaking of a few Basel rules but nothing substantial.

The only bank that has grown over the last 10 years ws RBS but look where they went. Of course new banks may come but what seems to happen is when a division of a bank do a particular job very well, the people in the division don't leave to form a new bank. They form small single function companies often to cream off money in a very small niche field. Ultimately leaving those banks which were in power in the late 80's post deregulation are pretty much as they were.

Of course if we had let them go bust what you say would happen new dynamic companies may have been started. But there will be no chance after lehman of that happening, far too many vested interests!

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whoa Neddy.

JPMorgan NEEDS to be at the hot centre to GET all this business.

You are saying they are big and thats the way they always were...No, they grew...as smaller ones will..by offering better services in the hot centre of the Universe.

the only thing that is constant is change....trying to slow change just backfires..

There is no guarantee that London will maintain the critical mass required to maintain its status as the financial capital of the world.

The change that we may see is in London's global status rather than in the major players in London.

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There is no guarantee that London will maintain the critical mass required to maintain its status as the financial capital of the world.

The change that we may see is in London's global status rather than in the major players in London.

London got where it was today by being an important port and trading route across the Thames. Then containerisation came in, the big ships couldn't navigate that far up stream, Tilbury was expanded downstream. London still survived. Things change. London will survive the loss of the banks, indeeds its vital unless UK wants to end up like Iceland (if it isn't all ready). The idea that the banks will repay their losses based on past income streams that more or less bust the country and created a huge asset bubble, and relied on peddling fraudulent securities is ludicrous. It will be good to see London earning an honest living again.

Edited by SirStirlingSlumlord

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London got where it was today by being an important port and trading route across the Thames. Then containerisation came in, the big ships couldn't navigate that far up stream, Tilbury was expanded downstream. London still survived. Things change. London will survive the loss of the banks, indeeds its vital unless UK wants to end like Iceland (if it isn't all ready). The idea that the banks will repay their losses based on past income streams that more or less bust the country and created a huge asset bubble, and relied on peddling fraudulent securities is ludicrous. It will be good to see London earning an honest living again.

The only question that I have is : What are the honest livings that London will earn?

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London got where it was today by being an important port and trading route across the Thames. Then containerisation came in, the big ships couldn't navigate that far up stream, Tilbury was expanded downstream. London still survived. Things change. London will survive the loss of the banks, indeeds its vital unless UK wants to end up like Iceland (if it isn't all ready). The idea that the banks will repay their losses based on past income streams that more or less bust the country and created a huge asset bubble, and relied on peddling fraudulent securities is ludicrous. It will be good to see London earning an honest living again.

How honest london is is irrelevant. All powerful cities could have been describes as moral vacuums. The cotton mills of the north made effective slaves of the rural populus that moved into the cities.

Have any of those northern cities ever really recovered when the trade disappeared..no..they are cities dependent of handouts from london. London probably has what it takes to adapt but there are no guarantees.

its the catch, justice dictates we would like to see the bankers 'get it' , but there is no point destroying ourselves in the process.

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The only question that I have is : What are the honest livings that London will earn?

No idea, but we keep being told how energetic, and creative the average Londoner is, so we live in hope.

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Just a thought at the moment there are some big projects happening to build even more London skyscrapers office blocks/shops/apartments.

http://forum.skyscraperpage.com/showthread.php?t=98139

Who will be working in them? where will the families live? can the infrastructure handle the influx? how will they get to work? where will the wages/salaries come from to pay the staff?

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No idea, but we keep being told how energetic, and creative the average Londoner is, so we live in hope.

With a materially shrunken financial sector, London is more likely to become Detroit than Paris or Frankfurt.

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Just a thought at the moment there are some big projects happening to build even more London skyscrapers office blocks/shops/apartments.

http://forum.skyscra...ead.php?t=98139

Who will be working in them? where will the families live? can the infrastructure handle the influx? how will they get to work? where will the wages/salaries come from to pay the staff?

I believe the Shard is continuing, as the construction trucks regularly hospitalise and kill cyclists. At least a hospital is nearby!

As for that JP Morgan site, the site has been excavated and its a pretty big hole in the ground! Its all been tanked (as its very close to the river) and work appears to be proceeding. I might have photo's/video's on a mobile phone somewhere in fact.

As for who works in all these buildings it varies. For instance JP Morgan will only operate in part of the new building. If you take other skycrapers in CW, The Olympic Delivery Authority occupy part of Barclays in Churchill Place. Also the Citigroup tower is substantially sublet with whole floors let on a serviced office basis to smaller operations.

But I think these monolithic banks like JP Morgan are a bit like our old car firms, probably becoming obsolete and will be replaced with much smaller specialist outfits as staff leave or are made redundant (as another poster has alluded to). Also a whole ton of accountancy firms and rating agencies (hahaha) have setup shop there.

Canary Wharf is only a major centre for the internet in the UK so you have a number of ISP's operating there such as UK2 servicing all their data centres operations that exist in East London. Internet firms tend to quietly get on with things without the need to threaten and blackmail the wider economy.

Edited by SirStirlingSlumlord

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  • 259 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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