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TheCountOfNowhere

Goldman Sachs to slash London presence due to Brexit

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For sure a hip hip hurray moment.

Indeed cause to celebrate - although as usual they don't seem to have made a final decision as the article uses the word "weighing" in the second paragraph  

So it might just be another threat in order to get their own way - Barclays regularly threaten that they'll move their HQ to the US if they don't get their own way but disappointingly never carry out their promise.  Similarly HSBC and probably quite a few others.  

Edited by billybong

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It's kind of weird that Theresa May is prepared to sacrifice the "wealth creator" bankers :P in order to go ahead with hard Brexit. There must be something more to it as finance is the holy cow of the UK government and what will the economy do without all the taxes the banks pay? 

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HSBC also doing the same

Quote

Richard Marsh, director of Edinburgh-based 4-Consulting, said ...

"WARNINGS have been made about the impact on Scotland’s key financial services sector after the boss of HSBC said the bank is on course to move 1,000 jobs from its London business to Paris."

"I believe the move of 1,000 HSBC jobs out of London will almost certainly have a knock-on effect on jobs in the sector in Glasgow and Dunfermline. Even if the loss of jobs in the short term are in London there will be operations in Glasgow and Dunfermline which provide services to parts of the industry which may be very specific. They may be back office, but still very well-paid jobs and if core functions go it puts questions over the supply chain."

Marsh was speaking after HSBC boss Stuart Gulliver said work was underway to move part of the business to Paris ...

Lasts year 4-Consulting told a Holyrood’s committee ... 24 per cent of the Scottish capital’s economy depends on banking and finance, six per cent more than London’s.

The more the Tuckin merrier. Sounds like it may have an even bigger affect in Scotland.

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Having ditched Hilary the banking filth are all cheering for Trump now. Hoping the light-touch, junk bond, casino days are here again. If banking jobs are being lost in London it's because they're being repatriated to Wall Street.

 

bb-trumptajmahalA.jpg?uuid=1IMVJrmUEeWCn

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So far the announcements haven't amounted to much. HSBC yesterday was relatively minor, GS is just a threat for now.

In any case, the problems are still the too-big-to-fail perception and over-dependency on this sector. Losing jobs isn't actually a good thing, creating an economy able to withstand the impact of bankruptcies and adding non-FIRE jobs would be worth celebrating.

It's quite possible for any bank to shift most of its operations to Frankfurt and still flood the UK economy with sub-prime credit. That's an even worse outcome than the current situation.

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51 minutes ago, darkmarket said:

So far the announcements haven't amounted to much. HSBC yesterday was relatively minor, GS is just a threat for now.

In any case, the problems are still the too-big-to-fail perception and over-dependency on this sector. Losing jobs isn't actually a good thing, creating an economy able to withstand the impact of bankruptcies and adding non-FIRE jobs would be worth celebrating.

It's quite possible for any bank to shift most of its operations to Frankfurt and still flood the UK economy with sub-prime credit. That's an even worse outcome than the current situation.

Quite, it didn't take much for HSBC to turn about on their threat to go elsewhere last time! Toys and Pram spring to mind.

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I'm working for a transformation project at HSBC involving offshoring thousands of jobs from Western home locations (US, Canada, UK, France, Germany) to India and China.

Admittedly this is mostly support functions like IT, but all our programs were frozen end of last year to review post brexit strategy, I don't see where they can move in Europe as you need trading floor space to move real bankers and that often takes large banks 2+ years to set up an office and associated IT and equipment, it wont be rapid and why rush when you don't know the Brexit outcome.

 

Its all scaremongering to try get some sweetheart deal from HMG. so transparent.

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1 minute ago, Quicksilver said:

I'm working for a transformation project at HSBC involving offshoring thousands of jobs from Western home locations (US, Canada, UK, France, Germany) to India and China.

Admittedly this is mostly support functions like IT, but all our programs were frozen end of last year to review post brexit strategy, I don't see where they can move in Europe as you need trading floor space to move real bankers and that often takes large banks 2+ years to set up an office and associated IT and equipment, it wont be rapid and why rush when you don't know the Brexit outcome.

 

Its all scaremongering to try get some sweetheart deal from HMG. so transparent.

It's a threat...so they get what they want from BrExit.

 

No one is listening to the people....the bankers want it all...AGAIN.

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3 hours ago, fru-gal said:

It's kind of weird that Theresa May is prepared to sacrifice the "wealth creator" bankers :P in order to go ahead with hard Brexit. There must be something more to it as finance is the holy cow of the UK government and what will the economy do without all the taxes the banks pay? 

Theresa's been grovelling to her banking masters:

http://uk.reuters.com/article/britain-sterling-close-idUKL5N1F93XP

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1 hour ago, Quicksilver said:

I'm working for a transformation project at HSBC involving offshoring thousands of jobs from Western home locations (US, Canada, UK, France, Germany) to India and China.

Admittedly this is mostly support functions like IT, but all our programs were frozen end of last year to review post brexit strategy, I don't see where they can move in Europe as you need trading floor space to move real bankers and that often takes large banks 2+ years to set up an office and associated IT and equipment, it wont be rapid and why rush when you don't know the Brexit outcome.

 

Its all scaremongering to try get some sweetheart deal from HMG. so transparent.

I heard on BBC wake up to money that Goldman had started to move stuff to Poland before Brexit (so in a way this is reannoncing something they were already doing to ram home the evil Brexit message).

 

The bank I am involved with has moved a lot of stuff to Wroclaw, Poland.  On the business side they started shifting back office trading stuff.  They soon realised the Poles were good, and you can get a highly numerate Pole more cheaply than a highly numerate Brit (you can get the Brits, but obviously they want to be paid well, partly due to the he expense of being in London).  Anyway it looks like this bank will shift more and more stuff to Poland, and I guess they will eventually shift even front office work there.

 

To me these banks are just using Brexit to justify their existing near shoring plans.  I doubt they really want to lift and shift everything from London to Frankfurt.

Edited by reddog

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5 hours ago, TheCountOfNowhere said:

BEST NEWS EVER!!!!!!

 

WE DON'T WANT YOU HERE!!!!!!   F&&K OFF!!!!!!!  WE NEVER EVER WANTED YOU HERE. YOU ARE POISONOUS SCUM ---- WE WILL BE FAR BETTER OF WITHOUT YOU!!!!  PLEASE F**K OFF AS SOON AS POSSIBLE!!!!

Edited by eric pebble

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You could hedge (lol) yourself if you are an investment banker from moving to Poland, by buying DPP (Dominoes Pizza Poland). More people will have more discretionary spending if London's financial square uproots to Wroclaw.

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1 hour ago, Mr Banks said:

Quite, it didn't take much for HSBC to turn about on their threat to go elsewhere last time! Toys and Pram spring to mind.

Indeed, there's much speculation about a lack of negotiating talent for the EU talks, but little discussion of who's talking to the private sector, what positions are being taken in different industries and whether there's sufficient talent and will in government and the civil service to ensure things go in the public interest.

The flurry of announcements from tech companies regarding new premises in London that followed the referendum was very suspicious. I'd like to know what commitments were made in return. With Nissan at least they were forced to admit they wouldn't reveal anything, with the tech companies nobody even asked.

All we get are these broad announcements about passporting, moving jobs and confidence. Even Reuters, Bloomberg and the FT haven't covered these issues well.

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Not to worry. The end game is protectionism anyway as people will just keep voting for more extreme options until they are allowed to have some sort of stake in society. 

Uncontrolled globalism where unskilled, and skilled now in many cases, brits are expected to compete with Indians and Chinese is not a outcome that will be able to be achieved through the ballot box. This is already being demonstrated and the push back will only get stronger.

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Please Don't Goooooo!!!

Here have this:

No tax to pay for 10 years!

No National Insurance contributions to pay for 10 years!

£5bn free grant to help settle in with Brexit

£25K Per annum for every UK employee retained for the next 10 years

Free 10% lifetime discount cards at your super markets

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In relaity, GS are reducing most of the trading bodies.

All software now.

Plonk the box in whateverwhere and run the trading there.

The days of lots of people working in finance are over.

A combination of technology and high capital means the numbers of off trading and finance.

Banks are going to be utilities. And about time too.

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I was talking to someone today who is heavily involved in engineering education at one of the top Russell group universities. Apparently, only 40 percent of their engineering graduates go into the actual subject. The rest are hoovered up by the city and end up working in merchant banking and suchlike.

another positive if they leave. They won't be pulling the talent out of the real world 

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4 minutes ago, One-percent said:

I was talking to someone today who is heavily involved in engineering education at one of the top Russell group universities. Apparently, only 40 percent of their engineering graduates go into the actual subject. The rest are hoovered up by the city and end up working in merchant banking and suchlike.

another positive if they leave. They won't be pulling the talent out of the real world 

Thats not new. Been like that 30 years.

 

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