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Dimon-By-The-Sea Shows London Banking’S Engine Of Growth

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http://www.bloomberg.com/news/2014-05-19/dimon-by-the-sea-shows-london-banking-s-engine-of-growth.html

Jamie Dimon cradles a cup of coffee as he waits for one of his 250,000 employees to open the locked door of an office marked “Global Command Centre.”

Once inside, the 58-year-old chief executive officer of JPMorgan Chase & Co. (JPM), the biggest U.S. bank, joins about 20 people facing computers and wearing headsets. On a wall hang four flat screens displaying a map of the world, a list of top clients and data on global money flows.

“We’re tracking the movement of trillions of dollars here,” says Dimon, pointing to one of the screens during a daylong visit this month. “From this room, we can actually pinpoint and deal with issues that come up around the world.”

Is he in New York? Tokyo? London? Try Bournemouth, a British seaside resort 108 miles south of the U.K. capital and 3,400 miles by overnight flight from Dimon’s Manhattan office. JPMorgan has more than 4,000 staff here, making it the area’s biggest employer. The bank is spending $48 million to modernize the site.

The use of banking backwaters -- “nearshoring” as it’s known -- is allowing the U.K. to bolster its status as a global financial powerhouse with London at its core. The satellites will help fight competition from rival hubs such as Hong Kong and Singapore in the wake of the collapse of Northern Rock Plc, the rescues of Royal Bank of Scotland Group Plc and Lloyds Banking Group Plc (LLOY) and trading scandals involving the Libor and foreign-exchange markets and JPMorgan’s “London whale.”

Nearshoring an interesting phrase. And if the satellites move what will the UK economy do then?

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Sounds like a Bond villain.

Really.

Not really. A common criminal and embezzler who should have been locked up years ago alongside Bernie Madoff. Interesting that JP Morgan has been priced out of London, however.

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Setting up outposts in banking hinterlands saves companies money on space and staff while enabling them to dive into a deeper talent pool that’s still not too far from their core. The broader economy also gets a bigger bite of a sector that contributed 12.6 percent to the economy in 2012.

:lol::lol:

The writer. Simon Kennedy, must have forgotten the minus sign in front of the 12.6 percent.

Edited by billybong

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“nearshoring” as it’s known -- is allowing the U.K. to bolster its status as a global financial powerhouse with London at its core

Nearshoring? Heard this a few times recently. Does that mean that London has become *so* expensive that junior bankers are now being shipped to "near" cities like Frankfurt, Amsterdam, Edinburgh where they can actually afford to live?

:lol:

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As for salaries, TheCityUK says they tend to track the productivity of workers. In 2012, the average gross value added of those in finance was 156,540 pounds ($262,250) in London, versus 78,144 pounds in the West Midlands, where Birmingham is.

:lol::lol:

The size of the financial sector bailouts and how much they can swindle from savers more like.

Edited by billybong

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